Questions and Replies

20 September 2018 - NW2251

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Kruger, Mr HC to ask the Minister of Small Business Development

(1)Whether any Enterprise Incubation Programmes for small businesses and cooperatives have been piloted in the (a) Thembisile Hani and/or (b) J S Moroka Local Municipalities in Mpumalanga (i) in each of the past five financial years and/or (ii) since 1 April 2018; if not, in each case, why not; if so, what are the details of the (aa) sectors in which the incubators are piloted, (bb) number of clients that benefitted from incubators, (cc) number of jobs created and (dd) names and addresses of each incubator; (2) whether any of the specified beneficiaries are supported by the (a) Small Enterprise Development Agency and/or (b) Small Enterprise Finance Agency; if so, what are the relevant details in each case?”

Reply:

(1)(a)&(b) No.

(i) &(ii) The Enterprise Incubation Programme (EIP) has been operational since 1 April 2016. Since being operational, the Department of Small Business Development (DSBD) has not piloted the EIP for small businesses and cooperatives in the identified municipalities. The Department has received one application from the Thembisile Hani Local Municipality. However, the application was not successful as it did not meet the requirements.

(aa),(bb),(cc) & (dd) Not applicable.

(2) Not applicable.

07 September 2018 - NW1112

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Mulaudzi, Mr TE to ask the Minister of Small Business Development

What (a) number of consulting firms or companies are currently contracted by (i) her department and (ii) the entities reporting to her and (b)(i) is the name of each consultant, (ii) are the relevant details of the service provided in each case and (iii) is the (aa) start date, (bb) time period, (cc) monetary value in Rands of each contract and (dd) name and position of each individual who signed off on each contract?”

Reply:

The details of consulting firms or companies that are currently contracted by the Department of Small Business Development (DSBD), and its entities (the Small Enterprise Development Agency [SEDA] and the Small Enterprise Finance Agency [SEFA]) are attached as Annexure A.

05 September 2018 - NW1483

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Rabotapi, Mr MW to ask the Minister of Small Business Development

(1)Whether, with reference to the reply of the President, Mr C M Ramaphosa, to the debate on the State of the Nation Address on 22 February 2018 to implement lifestyle audits, (a) she, (b) senior management service members in her department and/or (c) any of the heads of entities reporting to her have undergone a lifestyle audit in the past three financial years; if not, have any plans been put in place to perform such audits; if so, in each case, what are the details of the (i) date of the lifestyle audit, (ii) name of the person undergoing the audit, (iii) name of the auditing firm conducting the audit and (iv) outcome of the audit; (2) whether she will furnish Mr M P Rabotapi with copies of the lifestyle audit reports?”

Reply:

Neither the (a) the Minister of Small Business Development, (b) the senior Management service members nor the (c) heads of entities have undergone a lifestyle audit in the past three financial years. However, the Department of Small Business Development (DSBD) adheres to the system of financial disclosures as prescribed by the Public Service Regulations of 2016 which enables employees to disclose financial interests. This includes disclosure of shareholding, directorships and partnership, equities, income generating assets, sponsorships; remunerative work outside and employees’ formal employment; gifts and hospitality. This is a yearly exercise and the DSBD, like all Departments, are expected to comply with the regulation.

Financial disclosures by senior management service (SMS) are verified by the Public Service Commission (PSC) and by the Department of Public Service and Administration (DPSA). Any findings of possible conflict of interest are identified in this process and communicated with the relevant Executive Authority. Furthermore, the Auditor-General of South Africa (AGSA) has access to financial disclosures of employees by virtue of Section (15) of Public Audit, 2004 [Act No. 25 of 2004]. The AGSA is therefore empowered to conduct an audit on the lifestyle of any public service employees to verify the financial position of such persons and establish conflict of interest.

Although the announcement by the President is acknowledged on the need to conduct lifestyle audits, the Minister of Public Service and Administration (MPSA), Minister Ayanda Dlodlo in her Budget Speech on 16 May 2018, indicated that “In responding to the call by the President, we are developing a framework, which will inform how we institute or conduct lifestyle audits on all Public Service employees. This is in addition to existing measures, which prohibit employees from conducting business with organs of state”. The Small Business Development (SBD) Portfolio that is the DSBD together with its entities; the Small Enterprise Development Agency (Seda) and the Small Enterprise Finance Agency (sefa) will comply to the DPSA Framework for conducting lifestyle audits when adopted. This Framework will then be embedded in policies of the SBD Portfolio for guidance to ensure compliance.

(2) No. There are no report of such audits, since lifestyle audits, in the strict sense of the terms, have yet to be conducted by the Department in the event of a formalised Framework from the DPSA.

20 August 2018 - NW1834

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James, Ms LV to ask the Minister of Small Business Development

(1) Whether (a) her spouse and/or (b) an adult family member accompanied her on any official international trip (i) in each of the past five financial years and (ii) since 1 April 2018; if not, what is the position in this regard; if so, what (aa) is the name of the person(s), (bb) was the (aaa) purpose and (bbb) destination of the trip and (cc) was the (aaa) total cost and (bbb) detailed breakdown of the costs of the accompanying person(s) to her department; (2) whether each of the specified trips were approved by the President in terms of the provisions of Section 1, Annexure A of the Ministerial Handbook; if not, why not; if so, what are the relevant details?”

Reply:

(1)(a) Minister Lindiwe Zulu has travelled with her spouse on several International trips in the past five years.

(1)(a)(aa) Mr Kgosietsile Itholeng.

(aaa) Accompanying the Minister on the official trips.

(1)(i)&(ii)

YEAR & DATE

(1)(bb)

(1)(cc)

 

(aaa) PURPOSE

(bbb) DESTINATION

(aaa) and (bbb)

TOTAL AND DETAILED BREAKDOWN OF THE COSTS

15 – 18 March 2015

To attend the Global Entrepreneurship Ministerial Congress

Milan, Italy

Air travel: R 52 381.39

Subsistence and Travel (S&T):

R 3 000.00

(1)(i)&(ii)

YEAR & DATE

(1)(bb)

(1)(cc)

 

(aaa) PURPOSE

(bbb) DESTINATION

(aaa) and (bbb)

TOTAL AND DETAILED BREAKDOWN OF THE COSTS

14 - 21 October 2015

To attend the 11th edition of the Women’s Forum Global Meeting on the Economy and Society

To attend The 11th South Africa – United Kingdom Bilateral Forum

Deauville, France and proceeded to

UK, London

Air travel: R148 000.00

Subsistence and Travel (S&T): R 9 033.00 (for both countries):

R 3 033.00 (France)

R 6 000.00 (London)

7 – 13 November 2015

Official Presidential visit to the Opening of the Youth Skills Development And Employment Symposium

To meet with Executives of the UNCTAD, ILO AND WIPO on SMME related matters

Berlin, Germany and proceeded to

Geneva, Switzerland

Air travel: R 86 000.00

Subsistence and Travel (S&T):

R 8 374.00 (for both countries):

R 3 291.00 (Germany)

R 5 083.00 (Switzerland)

10 – 18 October 2016

8th BRICS Summit, BRICS Ministers of Trade and BRICS Trade Fair

New Delhi and Goa, India

Air travel: R 64 383.00

Subsistence and Travel (S&T): R 6 500.00

(1)(b) No adult family member has accompanied the Minister to official international trips in the specified timeframe.

(2) All the official trips undertaken by the Minister were approved by the President in terms of the provisions of Section 1, Annexure A of the Ministerial Handbook guidelines regarding international travel

14 August 2018 - NW947

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Chance, Mr R to ask the Minister of Small Business Development

(a) What is the name of each member of the academic community with whom she held a meeting on 20 October 2017, (b) what was the outcome of the meeting and (c) has any of the feedback had an influence on the policy direction of her department?”

Reply:

a) Details of the academic community in relation to the meeting held on 20 October 2017:

NAME

INSTITUTION NAME

1.Prof Richard Shambare

University of Venda

2. Dr Poppet (Gnanam) Pillay

Durban University of Technology

3. Dr Santra Moodley

Durban University of Technology

4. Joyce Sibeko

University of Johannesburg

6. Tendai Chimucheka

University of Forthare

6. Prof Margaret Cullen

Nelson Mandela University

7. Dr Seboka Kopung

Northwest University

8. Ms Natanya Meyer

Northwest University

9. Dr Tsidi Mohapeloa

Rhodes University

10. Dr Norah Clarke

University of Johannesburg

11. Dr Yvonne Senne

Tshwane University of Technology

12. Prof Evelyn Chiloane-Tsoka

UNISA

13. Lindiwe Kunene

University of KwaZulu Natal

14. Dr Khotso de Wee

University of Fort Hare

15. Dr Tendai Chimucheka

University of Fort Hare

16. Raan Steenberg

Tshwane University of Technology

17. Ms Joyce Sibeko

University of Johannesburg

18. Dr Natanya Meyer

University of North West

NAME

INSTITUTION NAME

19. Ms Malindi Kunene

University of KwaZulu Natal

20. Dr Thobeka Ncanywa

University of Limpopo

21. Charlotte Mashaba

KZN-KOTT

22. Ms Charleen Duncan

University of the Western Cape

23. Dr Richard Shambare

University of Venda

24. Ms Chemene Chetty

University of Witwatersrand

25. Seboka Kopung

University of North West

26. Althea Mvula

Tshwane University of Technology

27. Mr Roy Maponya

Dr Richard Maponya Institute

28. Mr Riaan Steenberg

Altovation Consulting

29.Anthony Cooper

Council for Scientific and Industrial Research (CSIR)

30. Gordan Godsal

Human Sciences Research Council (HSRC)

31. Ms Charlotte Mashaba

KZN•ROTT

32. Dr Randall Jonas

Nelson Mandela University

(b) Outcomes of the meeting:

OUTCOME 1: IDENTIFICATION OF GAPS AND AREAS OF IMPROVEMENT IN ENTREPRENEURSHIP EDUCATION

In relation to the expected outcome of identification of gaps and areas of improvement in entrepreneurship education, it was reflected that the approach to entrepreneurship education can be broadly categorized into two major approaches, the first being “education for entrepreneurship” and secondly “education about entrepreneurship”. The former has a practical focus on entrepreneurship education and the goal is to equip the learner with entrepreneurial skills. The latter focuses on the theoretical aspect of entrepreneurship education and its goal is to provide the student with knowledge pertaining to the various schools of thought around entrepreneurship. The gap that was identified is that the bulk of higher education learning around entrepreneurship has mainly focused on the theoretical approach which is education about entrepreneurship without necessarily equipping the leaner with practical skills that are required for entrepreneurship. Therefore there is a need to further engage institutions of learning on how the two approaches to entrepreneurship education can be brought into alignment with the country’s priority to train and develop an increasing number of entrepreneurs and to improve the skills base of existing entrepreneurs for business sustainability. Consideration will be given on the approach as the discourse around embedding entrepreneurship education into curricular continues.

OUTCOME 2: A PLAN ON HOW DSBD CAN COLLABORATE WITH ACADEMIA, GOVERNMENT DEPARTMENTS AND DEVELOPMENT FINANCE INSTITUTIONS TO ENSURE THE DEVELOPMENT AND GROWTH OF ENTREPRENEURSHIP

The second outcome speaks to the outlining of a plan on how the DSBD can collaborate with academia, government departments and Development Finance Institutions to ensure the development and growth of entrepreneurship. It emerged from the discussions that there were already efforts that had been taking place between various institutions and different sections of the public sector. It was established that because these efforts were fragmented and the impact thereof has been limited and minimal. A need for greater collaboration between all the stakeholders was identified. Going forward, it was determined that DSBD would have further engagements with higher education institutions and other government departments as a step towards coordination and collaboration. An invitation from DHET to DSBD was extended to attend their upcoming workshop on entrepreneurship education. This received a positive response from DSBD as DHET has already established a network of stakeholders around entrepreneurship education. It was generally agreed that stakeholders would share information on any new and ongoing programmes with regard to entrepreneurship education.

OUTCOME 3: THE ROLE OF DEVELOPMENT FINANCE INSTITUTIONS (DFIS)

The third outcome was concerning the role of Development Finance Institutions (DFIs) in entrepreneurship education. It was highlighted that efforts to promote entrepreneurship within institutions of higher learning often lacked the necessary financial resources which is an inhibiting factor for entrepreneurship education. It was suggested that there is a need to get commitment from various institutions to provide some type of financial investment towards entrepreneurship education. Therefore, the final plan on how the Department will collaborate will be drafted once existing collaborations have been determined in order to avoid duplication.

OUTCOME 4: GENERATION OF A DEPARTMENTAL-INSTITUTIONS OF HIGHER EDUCATION RESEARCH PROTOCOL AND FRAMEWORK THAT WILL KEEP GOVERNMENT ABREAST OF THE IMPACT OF ENTREPRENEURSHIP EDUCATION ON THE DEVELOPMENT OF SMALL ENTERPRISES.

The fourth outcome was in respect of generating a Departmental-Institutions of Higher Education research protocol and framework that will keep government abreast of the impact of entrepreneurship education on the development of small enterprises. It was reiterated that the promotion of research within entrepreneurship should be prioritised and that the already existing body of knowledge should be shared with the Department. It was discussed that some institutions made deliberate efforts towards updating research methodologies and strategies and therefore a connection between the Department and them would be of great benefit.

OUTCOME 5: DEVELOPMENT OF A HIGH-LEVEL FRAMEWORK WITHIN WHICH MULTI-STAKEHOLDER SMALL BUSINESS DEVELOPMENT SUPPORT PARTNERSHIPS WILL BE ESTABLISHED WITHIN INSTITUTIONS OF HIGHER EDUCATION TO ENSURE THE COMMERCIALISATION OF INNOVATIVE IDEAS AND PROVISION OF INTEGRATED SUPPORT SERVICES (CO-LOCATION)

The fifth outcome spoke of the development of a high-level framework within which multi-stakeholder small business development support partnerships will be established within institutions of higher education to ensure the commercialisation of innovative ideas and provision of integrated support services (co-location). It was discussed that some institutions were already implementing such arrangements particularly with SEDA, lessons on best practice around co-location would be shared among the stakeholders.

(c) Feedback that influenced policy direction on the Department

One of the main emerging points from the roundtable discussion was a need for the Department to be more intentional in its collaboration with institutions of higher learning regarding the promotion of entrepreneurship. The DSBD has an approved research agenda in place that reflects its thematic and priority areas of research around small, medium micro enterprises and cooperatives. A draft research plan has been formulated for the financial year 2018/2019. The Department is engaging higher education institutions with a view to entering into partnerships around research on SMMES and cooperatives.

In this regard, the Department intends utilising post-graduate students that are engaged in research commensurate with the thematic areas of the approved DSBD research agenda. Moreover the proposed partnership/s will allow the DSBD to conduct research in a cost effective manner and afford post-graduate students access to data and respondents for successful implementation and completion of research projects.

To date the Department has engaged with several academic institutions with the aim of forming research partnerships. The response from the academic institutions has been positive however at this stage formal Memoranda of Understanding (MoUs) are yet to be finalised. The latest of these engagements was on 01 June 2018, wherein the Minister addressed the South African Commerce Deans Association of all South African Universities at the Turfloop University, in Limpopo. The Minister addressed some of the issues raised in the October 2017 Colloquium with the Deans at this engagement, to which the Deans noted the input and later agreed among themselves to set up a team to follow up and implement some of these proposals.

03 August 2018 - NW1149

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Bagraim, Mr M to ask the Minister of Small Business Development

(1)What assistance has been provided by her department to (a) informal businesses and (b) other small businesses in the Dr J S Moroka Local Municipality and Thembisile Hani Local Municipality over the past three financial years; (2) by what date does she expect to finalise the regulations that define small businesses in all sectors?”

Reply:

(1)(a)(i) Informal Micro Enterprise Development Programme (IMEDP)

Through the Department of Small Business Development (DSBD) and the Small Enterprise Development Agency (SEDA) 46 informal businesses in Dr J S Moroka and 34 in Thembisile Hani were assisted through training in business skills in the 2016/17 financial year. The 43 of the 46 beneficiaries trained in 2016/17 financial year for business skills in Dr J S Moroka Local Municipality applied for the IMEDP incentive scheme and were approved in 2017/18 financial year. Whilst the 23 of the 34 beneficiaries trained in 2016/17 financial year from the Thembisile Hani Local Municipality have applied and approved for the incentive scheme in the 2017/18 financial year.

IMEDP Training

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani

0

34

0

34

Dr J S Moroka

0

46

0

46

       

80

Approved for IMEDP funding

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani

0

0

23

23

Dr J S Moroka

0

0

43

43

       

66

(ii) The following is the number of Informal businesses (SMMEs) that have benefitted from the following SEDA programmes:

 

SEDA - Briefing sessions

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani

0

37

20

57

Dr J S Moroka

0

31

84

115

       

172

SEDA - Outreach events

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani

157

208

38

403

Dr J S Moroka

53

307

75

435

       

838

SEDA - Training

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani

47

0

0

47

Dr J S Moroka

18

35

25

73

       

120

Small Enterprise Finance Agency (SEFA)

Traditionally, SEFA supported informal and microenterprises through Microfinance Intermediaries. Two of the SEFA funded intermediaries, the Small Enterprises Foundation and Phakamani Foundation have a high concentration of clients in the two provinces of Limpopo and Mpumalanga. Phakamani, in particular, has its head office in the Mpumalanga province, where most of its business is based. Informal and microenterprises in the Dr J S Moroka Local Municipality and Thembisile Hani Local Municipality have benefitted, and continue to benefit from the services of Phakamani Foundation.

 

1(b) DSBD - Black Business Supplier Development programme (BBSDP)

The Department has supported in total 20 and 15 small businesses Thembisile Hani and Dr J S Moroka respectively through business support and machinery and tools interventions.

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani

7

6

7

20

Dr J S Moroka

4

8

3

15

       

35

DSBD - Co-operatives Incentives Scheme (CIS)

The DSBD has through the Co-operative Incentive Scheme (CIS) also supported 6 Co-operatives in Thembisile Hani (3 Co-operatives) and Dr JS Moroka (3 Co-operatives) Local Municipalities. In the Thembisile Hani municipality, 2 of the Co-operatives are in the agricultural sector and the activities supported include piggery structure, pigs and feed, borehole and farming equipment and 1 Co-operative in the services sector that was supported amongst others with tents, chairs, tables, meat chain saw and a delivery vehicle. In the Dr JS Moroka municipality 2 co-operatives are in the agricultural sector and activities supported include tractor with implement as well as a commercial vehicle and 1 Co-operative in the services sector that got catering equipment.

 

Support through CIS

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani

3

0

0

3

Dr J S Moroka

3

0

0

3

       

6

SEDA – Total number of SMMEs supported with interventions

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani

4

4

2

10

Dr J S Moroka

5

5

4

14

       

24

SEDA – Total number of cooperatives supported with interventions

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani

1

1

2

4

Dr J S Moroka

2

2

2

6

       

10

Loan funding approved and disbursed by the Small Enterprise Finance Agency (SEFA)

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani (Amount)

R 3 000 000

R 2 500 000

R 182 000

R 5 682 000

Thembisile Hani (Number)

2

1

1

4

Dr J S Moroka (Amount)

R 0

R 0

R 0

R 0

Dr J S Moroka (Number)

0

0

0

0

Number of outreach programmes undertaken by SEFA

MUNICIPALITY

FY (2015/16)

FY (2016/17)

FY (2017/18)

TOTAL

Thembisile Hani

1

1

2

4

Dr J S Moroka

1

2

0

3

       

7

(2) The Department of Small Business Development (DSBD) is in the process of analysing and developing the amendments to Schedule 1 of the National Small Business Act, which defines SMMEs, ensuring that these definition are current, relevant and applicable to the structure and nature of SMMEs, thereby ensuring access to government support programmes while promoting their financial sustainability and ability to promote and create employment over the medium to long term. It is anticipated that the process will be finalised by 31 August 2018.

03 August 2018 - NW1937

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Mulaudzi, Mr TE to ask the Minister of Small Business Development

(1)What (a) is the total number of incidents of sexual harassment that were reported to the human resources offices of (i) her department and (ii) entities reporting to her in (aa) 2016 and (bb) 2017 and (b) are the details of each incident that took place; (2) was each incident investigated; if not, why not in each case; if so, what were the outcomes of the investigation in each case?”

Reply:

(1)(a)(i) The Department of Small Business Development (DSBD)

(aa) 2016/17: Zero.

(bb) 2017/18: Zero.

(1)(a)(ii) Small Enterprise Development Agency (SEDA)

(aa) 2016/17: Zero.

(bb) 2017/18: Zero.

Small Enterprise Finance Agency (SEFA)

(aa) 2016/17: Zero

(bb) 2017/18: 1 incident reported in September 2017.

(1)(i)(b) DSBD: Not applicable.

(1)(ii)(b) SEDA: Not applicable.

SEFA: One alleged case of sexual harassment was lodged. SEFA has a documented process on how to deal with Sexual Harassment matters raised and reported by employees and investigations are in line with the guidelines of the Disciplinary Code and Grievance Procedures approved on 1 October 2016.

(2) DSBD: Not applicable.

SEDA: Not applicable.

SEFA: With regard to the alleged sexual harassment case reported, a due process as per the documented procedure was followed, namely, the investigation, suspension and ultimately employee leaving the employ of SEFA in 2017.

31 July 2018 - NW1665

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Majola, Mr TR to ask the Minister of Small Business Development

What number of cases relating to the Prevention and Combating of Corrupt Activities Act, Act 12 of 2004, as amended, have been referred to the (i) SA Police Service (SAPS) and (ii) Directorate for Priority Crime Investigation (DPCI) by (aa) her department and (bb) each entity reporting to her for further investigation since the Act was assented to and (b) what number of the specified cases have (i) been investigated by SAPS and DPCI, (ii) been followed up by the respective accounting officers and (iii) resulted in a conviction in each specified financial year since 2004?”

Reply:

The Department of Small Business and Development Business Development (DSBD)

(i)(aa) None. The investigations did not conclude recommendations for criminal prosecution.

(ii)(aa) None.

(b)(i) Not applicable.

(b)(ii) Not applicable.

(b)(iii) Not applicable.

The Small Enterprise Development Agency (SEDA)

(i)(bb) Two (2) cases were reported to the South African Police Service (SAPS). There are additional two (2) cases that management still needs to implement the recommendations and open criminal cases with the SAPS.

(ii)(bb) None.

(b)(i) With regard to the two (2) cases reported to the SAPS, internal investigations concluded and recommendations have been given to management for implementation and improvement of the control environment. Further investigations are continuing with the SAPS.

(b)(ii) Refer to (b)(i).

(b)(iii) Refer to (b)(i).

The Small Enterprise Finance Agency (SEFA)

(i)(bb) Eight (8) Criminal cases of fraud have been opened by SEFA since its establishment in April 2012. These have been opened with the SAPS and investigated by the Commercial Crimes Unit.

(ii)(bb) None.

(b)(i) Eight (8) Criminal cases of fraud have been opened by SEFA.

(b)(ii) On-going follow-up is done with the Commercial Crimes Unit through SEFA’s Internal Audit Department.

(b)(iii) To date, there have been no convictions in relation to the cases opened.

14 July 2018 - NW1665

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Majola, Mr TR to ask the Minister of Small Business Development

What number of cases relating to the Prevention and Combating of Corrupt Activities Act, Act 12 of 2004, as amended, have been referred to the (i) SA Police Service (SAPS) and (ii) Directorate for Priority Crime Investigation (DPCI) by (aa) her department and (bb) each entity reporting to her for further investigation since the Act was assented to and (b) what number of the specified cases have (i) been investigated by SAPS and DPCI, (ii) been followed up by the respective accounting officers and (iii) resulted in a conviction in each specified financial year since 2004?”

Reply:

The Department of Small Business and Development Business Development (DSBD)

(i)(aa) None. The investigations did not conclude recommendations for criminal prosecution.

(ii)(aa) None.

(b)(i) Not applicable.

(b)(ii) Not applicable.

(b)(iii) Not applicable.

The Small Enterprise Development Agency (SEDA)

(i)(bb) Two (2) cases were reported to the South African Police Service (SAPS). There are additional two (2) cases that management still needs to implement the recommendations and open criminal cases with the SAPS.

(ii)(bb) None.

(b)(i) With regard to the two (2) cases reported to the SAPS, internal investigations concluded and recommendations have been given to management for implementation and improvement of the control environment. Further investigations are continuing with the SAPS.

(b)(ii) Refer to (b)(i).

(b)(iii) Refer to (b)(i).

The Small Enterprise Finance Agency (SEFA)

(i)(bb) Eight (8) Criminal cases of fraud have been opened by SEFA since its establishment in April 2012. These have been opened with the SAPS and investigated by the Commercial Crimes Unit.

(ii)(bb) None.

(b)(i) Eight (8) Criminal cases of fraud have been opened by SEFA.

(b)(ii) On-going follow-up is done with the Commercial Crimes Unit through SEFA’s Internal Audit Department.

(b)(iii) To date, there have been no convictions in relation to the cases opened.

10 July 2018 - NW1886

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Mulaudzi, Mr TE to ask the Minister of Small Business Development

(1)What (a) is the total number of incidents of racism that were reported to the human resources offices in (i) her department and (ii) entities reporting to her in (aa) 2016 and (bb) 2017 and (b) are the details of each incident that took place; (2) was each incident investigated; if not, why not in each case; if so, what were the outcomes of the investigation in each case?”

Reply:

(1)(a)(i) The Department of Small Business Development (DSBD) does not have any incidents of racism reported to the Human Resources unit.

(1)(a)(ii) The Small Enterprise Development Agency (SEDA) nor the Small Enterprise Finance Agency (SEFA) does not have any incidents of racism reported to their respective Human Resources units.

(1)(aa)&(bb) Not applicable.

(1)(b) Not applicable.

(2) Not applicable.

01 June 2018 - NW946

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Chance, Mr R to ask the Minister of Small Business Development

(a) What role and functions will the newly appointed Deputy Minister, Mr Cassel Mathale, fulfil in overseeing the department and (b) how will his role and functions be split with the Minister?”

Reply:

(a-b) Deputy Ministers are appointed to support Ministers in carrying out their duties in so far as the mandate of the respective Department they are appointed to. Therefore, the role and function of the Deputy Minister would be to support the Minister in carrying out the mandate of the Department of Small Business Development.

31 May 2018 - NW1037

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Chance, Mr R to ask the Minister of Small Business Development

(a) How was the R15 million transferred from the underspending National Informal Business Upliftment Strategy to the Gazelles expenditure as it is reported in the third quarter report of the 2017-18 financial year of her department, (b) why was the additional amount required and (c) what had already been budgeted for the Gazelles?”

Reply:

(a) The National Informal Business Upliftment Strategy instruments i.e. were formulated and implemented from 2015/16 financial year. These instruments have not been performing well due to both capacity and the tedious nature of the implementation mechanisms such as partnerships with municipalities that were not forthcoming and the internal supply chain processes with onerous requirements. Based on this and given the underperformance of the programme a decision was made by the Department to transfer part of the funds to the performing programmes and The National Gazelles Programme was identified as one of these.

(b) The amount was required since the Gazelles programme has not been funded since its conceptualisation.

(c) The Gazelles programme did not have a budget. It was funded through the adjustment estimates applied for every year till recently when the programme was allocated R30 million budget by the National Treasury.

31 May 2018 - NW12

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Chance, Mr R to ask the Minister of Small Business Development

(1) With reference to her reply to question 2199 on 7 November 2016, by what date will a certain person (name and details furnished) sell the 40% shares in a certain company (name furnished) that was given the contract to manage her department’s National Gazelles Programme; (2) whether the specified person received any material benefit from (a) fees and/or (b) dividends paid by the specified company while the person occupied a certain position (details furnished); if so, (3) was the specified conflict of interest disclosed to (a) her and/or (b) her department; if not, in each case, why not; if so, in each case, what are the relevant details; (4) whether she will furnish Mr R W T Chance with a copy of the person’s employment contract; if not, why not; if so, what are the relevant details?”

Reply:

1. The shares were disposed of at the end of 2016 and the person is no longer a shareholder or executive.

2. The person naturally received benefits as a shareholder and Director until shares were disposed of and he had resigned from all positions.

3. Yes, the conflict of interest was declared before appointment as per the report from the Public Service Commission on this matter, however, the Minister requested the adviser to dispose of his shareholding to deal with any perceived conflict, which was duly done.

4. Yes, the employment contract can be furnished.

25 May 2018 - NW143

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Mulaudzi, Mr TE to ask the Minister of Small Business Development

(1) What are the details including the ranks of service providers and/or contractors from which (a) her department and (b) the entities reporting to her procured services in the past five years; (2) what (a) service was provided by each service provider and/or contractor and (b) amount was each service provider and/or contractor paid; (3) (a) how many of these service providers are black-owned entities, (b) what contract was each of the black-owned service providers awarded and (c) how much was each black-owned service provider paid?”

Reply:

(1)(2)&(3) The Department of Small Business Development (DSBD) was established in 2014 and continued with financial management under the Department of Trade and Industry (the dti) until the end of the end of the 2015-16 financial year. The DSBD’s financial functionality was fully independent in the 2016-17 financial year.

A summary of the response for the DSBD, Small Enterprise Finance Agency (SEFA) and the Small Enterprise Development Agency (SEDA) is captured in Table 1 below, with the detailed content attached as Tags as follows:

Tag A: Service providers and/or contractors utilised by DSBD;

Tag B: Service providers and/or contractors utilised by SEFA; and

Tag C: Service providers and/or contractors utilised by SEDA.

NO

ITEM

DSBD

SEFA

SEDA

1(a)

Details including the ranks of service providers and/or contractors from which DSBD procured from

245 Orders created from Level 1, 2, 3,4,6,7 and 8 at R33 686 285.53

Not applicable

Not applicable

1(b)

Details including the ranks of service providers and/or contractors from which entities procured from

Not applicable

705 Orders concluded from Levels 1,2,3,4,5,6,7 & 8 as well as those who were non-BEE compliant to the value of R178 087 977 over the period 2012/13 to 2016/17 financial years.

29 service providers/contractors appointed from Level 1,2,3,4,6 and 8 at R113 074 155,20

2(a)&(b)

Details of service providers/contractors and amounts paid

Refer to Tag A

Refer to Tag B

Refer to Tag C

3(a)

Number of service providers that are black-owned

  • Level 1: 155 orders created: R 18 389 792.93
  • Level 2: 18 orders created: R 1 309 281.93
  • Level 3: 25 order created: R 3 233 573.72
  • Level 4: 24 order created: R 6 392 896.43
  • Level 1: 350 orders created: R 59 486 755.90
  • Level 2 = 96 orders created: R 44 120 602.87
  • Level 3 = 65 orders created: R 14 999 799.93
  • Level 4 = 80 orders created: R 44 434 868.79
  • Level 1: 3 service providers - R 4,790 060.46.
  • Level 2: 4 service providers - R 6 973 913.74.
  • Level 3: 3 service providers - R 12 198 050.98.
  • Level 4: 3 service providers - R 9 919 308.40

3(b)

Contract awarded to black-owned service providers

Refer to Tag A

Refer to Tag B

Refer to Tag C

3(c)

How much was each black-owned service provider paid

222 Service providers paid at an amount of R 20 182 946.55 (Breakdown in Tag A)

591 Service providers paid at an amount of R163 042 027.49

(Breakdown in Tag A)

13 black-owned service providers paid at an amount of R33 881 333,32.

(Breakdown in Tag C)

25 May 2018 - NW1036

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Chance, Mr R to ask the Minister of Small Business Development

(1)(a) By what date will the position of director-general (DG) of her department be advertised since the contract of the current DG ends in August and (b) by what date will a new DG be appointed; (2) whether she has plans for a hand-over period from the current to the new DG; if not, why not; if so, what are the relevant details?

Reply:

(1)(a) The contract of the Director General of the Department of Small Business Development (DSBD) expires on 30 September 2018. It is anticipated that the post will be advertised on 15 June 2018.

(1)(b) According to the action plan (attached as Annexure A) the new Director General will be appointed on 1 September 2018. This is dependent on external factors influencing the dates on the action plan for example the availability of the Ministers to serve on the panel as well as Cabinet’s schedule to consider the recommendation of appointment from the Minister of Small Business Development.

2. The Director General will embark on a hand-over process during September 2018 during which she will work hand-in-hand with the newly appointed Director General.

08 May 2018 - NW995

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King, Ms C to ask the Minister of Small Business Development

How much land does (a) her department and (b) the entities reporting to her (i) own, (ii) have exclusive rights to and/or (iii) lease from the State to (aa) use and/or (bb) occupy?”

Reply:

a) The Department of Small Business Development (DSBD)

  1. The DSBD does not own any land;
  2. The DSBD does not have any exclusive rights to any land; and
  3. The Department also does not lease any land from the State:

(aa)&(bb) Not applicable since the Department does not own any land nor lease land.

  1. The Small Enterprise Development Agency (SEDA)
  2. SEDA does not own land;
  3. SEDA does not have any exclusive rights to any land; and
  4. SEDA does not lease from the State:

(aa)&(bb) Not applicable.

  1. The Small Enterprise Finance Agency (SEFA)
  2. 367 713 m²
  3. 367 713 m²
  4. 5 054 m² - North West Development Corporation SOC Ltd:

(aa) SEFA letting to SMMEs / tenants.

(bb) Occupied by tenants only.

03 April 2018 - NW728

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Ollis, Mr IM to ask the Minister of Small Business Development

(1)Whether her department has a sexual harassment and assault policy in place; if not, (a) why not and (b) by what date will her department have such a policy in place; if so, (i) how are reports investigated and (ii) what are the details of the consequence management and sanctions stipulated by the policy; (2) (a) what is the total number of incidents of sexual harassment and assault that have been reported in her department (i) in each of the past three financial years and (ii) since 1 April 2017, (b) what number of cases were (i) opened and concluded, (ii) withdrawn and (iii) remain open based on the incidents and (c) what sanctions were issued for each person who was found to have been guilty?”

Reply:

1. The Department of Small Business Development (DSBD) has a Sexual Harassment Policy in place. With regard to handling of assault related cases, the DSBD will recognise and apply the Disciplinary Code and Procedures (Resolution 1 of 2003).

a) Not applicable.

b) The Sexual Harassment Policy was approved by the Director General on 28 May 2016.

(i) The reports will be investigated in terms of the procedures stipulated in the policy.

(ii) The policy prescribes that the existing internal procedure such as disciplinary, appeal and dispute procedures be utilised. The disciplinary measures shall be taken in accordance with the Disciplinary Codes and Procedure for the Public Service. The policy does not indicate the sanctions as each case will be dealt with on its own merits and the sanctions will be determined during the hearing.

(2)(a)(i)&(ii) There were no reported cases of sexual harassment nor assault since the Department’s inception.

(b)(i)-(iii) Not applicable.

(c) Not applicable.

15 March 2018 - NW334

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Gqada, Ms T to ask the Minister of Small Business Development

What amount did (a) her department and (b) each entity reporting to her spend on the promotion or celebration of the Year of O R Tambo on the (i) Africa News Network 7 channel, (ii) SA Broadcasting Corporation (aa) television channels and (bb) radio stations, (iii) national commercial radio stations and (iv) community (aa) television and (bb) radio stations since 1 January 2017?

Reply:

DSBD spent R0.00 on the promotion or celebration of the Year of OR Tambo on the (i) Africa News Network 7 channel, (ii) SA Broadcasting Corporation (aa) television channels and (bb) radio stations, (iii) national commercial radio stations and (iv) community (aa) television and (bb) radio stations since 1 January 2017?

NW356E

15 March 2018 - NW464

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Chance, Mr R to ask the Minister of Small Business Development

(a) What is the (i) make, (ii) model, (iii) price, including all extras, and (iv) date on which each vehicle was purchased for use by (aa) her and (bb) her deputy since 1 April 2017 and (b) who authorised each purchase in each case?

Reply:

a) Details of the vehicles purchased for use by the Minister and the Deputy Minister:

NO.

ITEM

(aa) THE MINISTER

(bb) THE DEPUTY MINISTER

(a)

(i) Make

BMW

BMW

 

(ii) Model

540i

540i

 

(iii) Price, including all extras

R944, 376.80

R874, 876.80

 

(iv) Date Purchased

20 December 2017

20 December 2017

(b)

Purchase authorised by:

The Director-General

The Director-General

15 March 2018 - NW443

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Chance, Mr R to ask the Minister of Small Business Development

(1)With reference to her reply to oral question 336 on 4 December 2017, what is the (a) purpose of the position of Business Development Officer: Paper Chemicals and Plastics and (b) remuneration package for the specified position; (2) whether the specified position has been advertised; if not, on what date will it be advertised; if so, (a) on what date was it advertised and (b) what are the further relevant details; (3) whether the specified position has been filled; if not, on what date will it be filled; if so, what are the relevant details?”

Reply:

(1)(a) The purpose of the post is to process Development Finance Incentive applications and claims and make recommendations for approvals and payments. The title Business Development Officer: “Chemicals and Plastics” was incorrect as it was used by the Department of Trade and Industry (the dti) and therefore transferred as such to the Department of Small Business Development (DSBD). However, it has been amended and was advertised with the correct title of Business Development Officer in alignment with the DSBD job titles.

(b) Remuneration package: R385 543 per annum (all inclusive).

(2)(a) The Business Development Officer position was advertised on 24 November 2017.

(b) The position was advertised in the Public Service vacancies circular.

(3) Interviews for the Business Development Officer were concluded on 14 February 2018. Recommended candidate information was forwarded for background screening and feedback is expected on 16 March 2018.

15 March 2018 - NW17

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America, Mr D to ask the Minister of Small Business Development

(1) (a) What are the details of persons from (i) her (aa) office and (bb) department and (ii) small, medium and micro enterprises that accompanied her on her visit to China to attend the China International Small and Medium Enterprises Fair from 10 to 13 October 2017 and (b) what are the full details of the costs incurred in each case for (i) travel, (ii) accommodation, (iii) daily expenses and (iv) costs relating to the fair; (2) what quantifiable benefits does she expect to accrue to South Africa as a result of attending the specified fair?”

Reply:

(1)(a)(i) The South African delegation, led by the Minister of Small Business Development, consisted of the Director General of the Department of Small Business Development (DSBD) and the economic cluster portfolio counterparts from two (2) provinces, namely, Free-State, and North-West. The details of the participating portfolios are as follows:

  • Dr Benjamin Malakoane, Member of Executive Council (MEC): Free State, Department of Economic, Small Business Development, Tourism and Environmental Affairs;
  • Ms Wendy Joy Nelson, Member of Executive Council (MEC): North West, Department of Finance, Economy and Enterprise Development and North West Development Corporation.

The following is the list of DSBD officials that accompanied the Minister:

(i) (aa) Minister’s office

#

Name

Designation

1

Linton Mchunu

Chief of Staff: Ministry

2

Judy Booysen

PA to the Minister

3

Gugu Sithole

Ministry: Support

(i) (bb) Department

#

Name

Designation

4

Edith Vries

Director General

5

Tiny Makana

PA to the Director General

6

Tlou Nong

International Relations Officer

7

Nonelelwa Qoboshiyana

Acting Director: Strategic Partnerships

8

Cornelius Monama

Chief Director: Communications and Marketing

9

Chantelle Martin

Strategic Partnerships (Admin and Logistic Support)

(ii) A total of thirty-four (34) exhibitors represented South Africa from various sectors including agro-processing - production of some of the most exclusive agricultural products, biodiesel production, manufacturing, engineering and infrastructure development, textile and fashion, farming, solar energy and services. The thirty-four (34) SMME’s that exhibited were as follows:

#

Enterprise Name

Representative/s

Province

Sector and Products

1

All-S-Africa

Mr Pieter Lessing

Free State

Manufacturing- Décor art

2

Botebo Farming

Ms Tebogo Ditsebe

Free State

Agro processing – Wines

3

Dihoai Farming

Mr Malefetsane Mphuti

Free State

Cooperative farming fertilizer

4

Donovanskop 210 Energy

Ms Lindiwe Mokoena

Free State

Manufacturing - Solar systems

5

Green Finger Multi-purpose Co-op

Ms Mpho Puseletso Ntema

Free State

Agro processing – Bottled tomato relish, tomato sauce and Bottled beetroot

6

VJS Jewellers

Mr Velile Isaac Jonas

Free State

Manufacturing – Jewellery

7

Thabile Tours

Ms Rochney Schewandray Mdhluli

Free State

Services - Tourism Services

8

Blossoms

Ms Florence Ntibi Nkoane

Free State

Manufacturing - Lavender Health and Body Products

9

Vergezocht Oil

Mr Franz Homsek

Free State

Manufacturing – High Oleic Oil

10

UnXpected

Ms Refilwe Lerato Senoko

Free State

Manufacturing – Handmade sneakers and fragrance (Resilient brand)

11

Leema Industries

Mr Sehurutshe Kgomongwe

North West

Manufacturing - Computer components

12

Fearles Afrika

Mr Eugene Onkgopotse Mafatshe

North West

Manufacturing – sanitary products

13

Chiz Boys

Mr Goitseona Ignatitious Maotoe

North West

Agro processing – Cheese

14

SNSET Institute

Sir Stuart Ntlathi

North-West

Manufacturing

15

Lekoa Mining

Teboho Oriel Pitso

Gauteng

Manufacturing - Conveyor idlers, conveyor structure covers

16

Bradchem

Bradley McPherson

Gauteng

Window, Industrial chemicals cleaner and equipment

17

Molly’s Foods

Ms. Lerato Agnes Nonyane (CEO/Founder)

Gauteng

Powdered drinks

#

Enterprise Name

Representative/s

Province

Sector and Products

18

Memeza Shout

Thulile Mthethwa

Gauteng

Memeza personal safety alarm, memeza community, policing alarm

19

Flat Foot Air conditioners CC

Mabuti Maxhoba

Eastern Cape

Air conditioners, hot water vessels

20

Nandzu Trade and General Projects

Nkhensani Caroline Hlungwane

Limpopo

Construction, maintenance, road construction, electrical services, pipe laying, storm water drainage

21

Second Office

Sibongile Booi

Eastern Cape

Virtual Office Space and Secretarial services

22

Green buds

Samuel Maniki Phalane

North West

Fresh fruits and vegetables

23

Shangalia

Tshepo Charity Mdake

Gauteng

Diffusers, fragrances, massage oils, massage candles,

24

Chemiblend (Pty)

Lundi Xokiyana

Eastern Cape

Industrial and cleaning chemicals

25

Today Destiny Traders

Gisimani Peter Madlala

Gauteng

Transformers, inductors, printed circuit board, pulse/frequency transformer

26

Dirang Mmogo Business Enterprise

Vuyisile Vincent Mazinyo

North West

Kikuyu grass, pansy flowers, gazania flowers, fertilizers manufacturing

27

Sister Jenny

Ms Jennifer Gael

Gauteng Province

Medical – skin creams

28

CL Telecoms

Ms Asanda Solinjani

Gauteng Province

ICT

29

Absolute Wines

Ms Anne Serobolo

Gauteng Province

Wine Industry – South African Wines

30

Mahele Auto Doctor

Mr Johannes Mahele

Gauteng Province

Automotive Industry

31

IKIM Solutions

Mr Zimasa Maiyunjwa

Eastern Cape

ICT

32

Rainbow Granite & Marble Works Enterprises (Pty) Ltd

Abram Rankeng

Northern Cape

Granite

33

Reapso South Africa

Mahlatse Ofentse Mashile

Gauteng

Corporate Clothing and Gifts

34

Jamsco Automotive Assemblies (Pty) Ltd

Hayley Eagle

Gauteng

Sheet metal welded assemblies and sub-assemblies, dash panel, rocker panel and tunnels.

(b) Having agreed to Co-host the event, the Department negotiated terms with the organisers of CISMEF and as co-hosts obtained sponsored accommodation with hotel rooms paid for by the organisers as well as ground transport for all participants. Seven (7) officials, including the Minister were accommodated by the organisers. Furthermore, there were four officials from the Department who were responsible for the events logistics who were accommodated through Departmental funds paid for through the Department of International Relations and Cooperation (DIRCO) to the Embassy.

Exhibitors were funded through various streams as follows:

    • Ten (10) exhibitors supported by the Free State Province and three (3) supported by the North West Province;
    • Ten (10) exhibitors supported through the Sector Specific Assistance Scheme (SSAS) from the Department of Trade and Industry;
    • Seven (7) exhibitors supported by the Department of Small Business Development; and
    • Four (4) self-funded exhibitors.

 

((iii)(iv) Officials daily expenses and travel costs:

 

Official

1(b)(i) Cost of Travel

1(b)(ii) Cost of Accommodation

1(b)(iii) Daily Expenses

1

Mr Linton Mchunu

R 49 517.23

None

R 10 261.57

2

Ms. Judy Booysen

R 23 221.23

None

R 6 580.40

3

Ms. Gugu Sithole

R 23 221.23

None

R 7 829.85

4

Ms. Edith Vries

R 137 402.23

None

R 9 160.31

5

Ms. Tiny Makana

R 126 082.20

None

R 9 821.31

6

Mr. Tlou Nong

R 23 245.23

R99 000 paid to DIRCO

R 22 807.05

7

Ms. Nonelelwa Qoboshiyana

R 23 245.23

 

R 15 801.82

8

Mr. Cornelius Monama

R 23 245.23

 

R 13 156.62

9

Ms. Chantelle Martin

R 23 245.23

 

R16 665.87

Total

R 452 425.04

R 99 000.00

R 112 084.80

  1. The Department paid for travel costs for nine (9) officials.
  2. Accommodation costs for Minister and five (5) officials were covered through negotiations with the event organisers for sponsored hotel rooms. The Department only covered the accommodation costs for four officials who provided logistical and communications support for the event.
  3. Daily expenses were covered by the Department for the nine (9) officials.
  4. As ground transport and all the Exhibition tags and registrations was covered by CISMEF organisers, there were no direct costs relating to the fair that were incurred by the officials. However, the cost of the Pavilion and the Cocktail function held for the SMME’s were as follows:

1 (iv) Costs Relating to the Fair

Amount

South African Pavilion Stand Design, Construction and Branding

R1 476 398.57

Cocktail Function

60 000 RMB

(Approximately, R120 000)

2. Quantifiable Benefits from attending CISMEF

Some of the most remarkable benefits derived from CISMEF are not necessarily quantifiable. The level of exposure these SMME’s received as well as the skills they gained from being part of CISMEF could never be measured but they are none the less just as important as the Business to Business deals that were made.

The co-hosting of the 14th CISMEF has provided the Department an opportunity to show-case the capabilities of SME’s in our country on a global scale. This was the first international pavilion the DSBD has participated in, since proclamation. The opportunity afforded our SME’s with a platform to not only to access global markets for their products but also to gain linkages to their Chinese counterparts.

The upshot of CISMEF was the conducting of Business to Business (B2B) match making activities principally with clients from the Bank of China and other business associations. South African exhibitors have reported successful market linkages with Chinese counterparts. The process of engagement between South African and Chinese companies is ongoing but thus far identified B2B linkages that may translate into trade opportunities for participating enterprises are as follows:

Name of Enterprise

Client Name

Market Linkages Secured/ Pending

Chiz Boys

Goitse Maotoe

  • Established new business relationships with Chinese companies willing to purchase their products.
  • Chiz Boys requested to produce cheese sauce, as there was an interested to procure.
  • Chiz Boys also gained knowledge on creation of new markets for cheese in relation to the possible opportunities in China and making inroads into this market.

Green-Buds Logistics

Sammy Phalane

  • Green-Buds Logistics now has off-takes to supply citrus fruits (oranges, lime, lemon and grapefruit) to China. Also secured the service of an agent who will source/ import for different grocery stores in China.

Fearless Afrika

Eugene Mafatshe

  • Fearless Afrika met with equipment manufacturer for investment and equipment procurement. The manufacture’s equipment meets Fearless Afrika’s expectations. It can produce more ranges of sanitary towels as per demand in RSA and the rest of the continent.

Name of Enterprise

Client Name

Market Linkages Secured/ Pending

Leema Industries

Sehurutshe Kgomongwe

  • Leema Industries has greatly benefitted from the fair. They met two companies that are willing to supply them with the machinery to manufacture computers in South Africa, provided Leema Industries can show that they have a solid market in South Africa. These companies are willing to enter into a relationship with Leema Industries.
  • They also visited some Chinese factories, state of the art and technologically advanced manufacturing processes. Also developed strong relations with SME from South Africa; they requested that a platform for communication and idea sharing be created amongst South African Exhibitors.

Dirang Mmogo Business Enterprise

Kelly D Phukile

  • The enterprise has made leads with other Chinese vegetables and flower plant sellers. CISMEF has provided new perspectives on innovation and helped us expand our horizon in innovation and healthy development of plants”.

Botebo Wines

Tebogo Ditsebe

  • The negotiations to export 383 boxes of wine per month to a retailer in China are ongoing and have not yet been finalised.

VJS Jewellers

Mr Velile Isaac Jonas

  • A Chinese company, known as Good Idea Steel Jewellery has expressed interest in distributing VJS Jewellery. Mr Jonas is currently conducting research before agreeing to the business transaction.
  • A Polish company encountered during CISMEF has additionally also shown interest in importation of VJS products. Negotiations are ongoing.

26 February 2018 - NW150

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Khawula, Ms MS to ask the Minister of Small Business Development

Whether (a) her department and/or (b) any entity reporting to her own land; if so, in each case, (i) where is each plot of land located, (ii) what is the size of each specified plot and (iii) what is each plot currently being used for?”

Reply:

(a) The Department of Small Business Development (DSBD) does not own land.

(i) Not applicable.

(ii) Not applicable.

(b) The Small Enterprise Development Agency (SEDA) does not own land.

(i) Not applicable.

(ii) Not applicable.

(b) The Small Enterprise Finance Agency (SEFA) – see table below.

 

Place

No.

Building Name

Exact Area

Use

Lettable

Area M²

No. Units

WESTERN CAPE

1

MITCHELLS PLAIN FACTORY 1

Alpha Road, Mitchells Plein

Workshops / Light Industrial

36

1

 

2

MITCHELLS PLAIN FACTORY 2

Alpha Road, Mitchells Plein

Workshops / Light Industrial

496

8

 

3

BLACKHEATH HIVE

Range Road, Blackheath, Stellenbosch

Workshops / Light Industrial

6

1146

 

4

BEACON VALLEY

Corner Trampoline and Metropolitan Roads, Beacon Valley

Retail

2058

10

 

5

LENTEGEUR C

Merrydale Avenue, Mitchells Plein

Retail

2174

17

 

6

WESTRIDGE

Corner Westpoort and Simonsig Avenues

Retail

4126

30

 

7

ROCKLANDS J

Corner Park and Caravelle Roads, Rocklands

Retail

5044

22

 

8

NEIL HARE Portions 15 to 18

Neil Hare Road, Atlantis Industria, Atlantis

Medium -Heavy Industrial workshops

6880

4

 

9

ATLANTIS WESTFLEUR TRADING CENTRE

Wesfleur Circle, Atlantis

Retail

5879

37

 

10

KHAYELITSHA 1 (Vlllage 1)

Corner Monza Road and Mkabeni Road, Khayelitsha

Retail

1005

8

EASTERN

CAPE

11

GELVANDALE FACTORIES

3 Liebenberg Road, Gelvandale, PE

Workshops / Light Industrial

2277

9

 

12

KWAMAGXAKI SHOPPING CENTRE

Corner Ralo and Cetu Streets, Kwamagxaki, PE

Retail/Offices

1434

17

 

13

LINDSAY ROAD HIVES

6 Lindsay Road, PE

Workshops / Light Industrial

3439

36

 

14

GELVANDALE SHOPPING CENTRE

7 Liebenberg Road, Gelvandale, PE

Retail

3475

20

GAUTENG

15

EMBALENHLE

Ingwe Drive, Embalenhle

Vacant land

4000

0

 

16

KLIPSPRUIT WEST

70 St Helna Street, Klipspruit West

Retail/Offices

1120

4

 

17

ATTERIDGEVILLE INDUSTRIAL PARK 1

49 Malebye Street, Saulsville

Workshops / Light Industrial

1758

22

 

18

GA‐RANKUWA INDUSTRIAL PARK

Zone15,south Street,Ga‐Rankuwa

Workshops / Light Industrial

1550

10

 

19

ROSSLYN 20

7 Piet Pretorius Street, Rosslyn

Medium -Heavy Industrial workshops

1301

1

 

20

ROSSLYN 21,22&23

99 Piet Pretorius Street, Rosslyn

Medium -Heavy Industrial workshops

2356

3

Place

No.

Building Name

Exact Area

Use

Lettable

Area M²

No. Units

GAUTENG (continued)

21

MAMELODI INDUSTRIAL PARK 1

19159 Tsamaya Road, Mamelodi

Workshops / Light Industrial

1814

15

 

22

MAMELODI INDUSTRIAL PARK 2

19159 Tsamaya Road, Mamelodi

Workshops / Light Industrial

1207

15

 

23

ATTERIDGEVILLE INDUSTRIAL PARK 2

23 Mamogale Street, Saulsville

Workshops / Light Industrial

1521

19

 

24

SEBOKENG 1

Sebenza Street, Zone 6, Sebokeng

Workshops / Light Industrial

2514

32

 

25

EMBALENHLE FACTORIES

Ingwe Drive, Embalenhle

Workshops / Light Industrial

1800

31

 

26

GELUKSDAL

Uittog Avenue, Geluksdal

Retail

1110

8

 

27

SEBOKENG 2

Moshoeshoe Street, Zone 10, Sebokeng

Workshops / Light Industrial

3430

28

 

28

ELDORADO PARK

20 Industrial Crescent, Eldorado Park

Workshops / Light Industrial

3079

9

 

29

EMDENI

Corner Tshangisa & Masango Roads, Emdeni

Workshops / Light Industrial

4362

18

 

30

HENNOPSPARK INDUSTRIAL PARK

167 Edison Crescent, Hennopspark Ext 7, Centurion

Workshops / Light Industrial

3080

8

 

31

VUKA TSOGA

Tshipi Road, Vosloorus Ext 1

Workshops / Light Industrial

3871

32

 

32

LENASIA

Stand 8577/9, 40 Tugela Street, Lenasia Ext 10

Workshops / Light Industrial

4000

11

 

33

ORLANDO WEST SHOP

Klipvalley Drive, Orlando West

Workshops / Light Industrial

11390

83

 

34

PENNYVILLE HIVE

144 New Canada Road

Workshops

10557

133

KWAZULU-NATAL

35

GLEBE SHOPPING CENTRE

Old South Coast Road, Umlazi

Retail

2832

41

 

36

GLEBE SHOPPING CENTRE Ext

Old South Coast Road, Umlazi

Retail

855

57

 

37

UMLAZI 1

Dingani Road, Umlazi

Retail

1728

71

 

38

KWA DABEKA 1

Khululeka Drive, KwaDabeka

Workshops / Light Industrial

2378

30

 

39

KWA DABEKA 2 ISA

Khululeko Drive, KwaDabeka

Workshops / Light Industrial

948

3

 

40

VICTORIA STREET MARKET

151/155 Bertha Mkize Road, Durban

Retail

8940

57

FREE STATE

41

KRAAL STREET FACTORIES

Corner Kraal and Coro Streets, East End, Bloemfontein

Workshops / Light Industrial

842

5

 

42

BOHLOKONG SHOPPING CENTRE

Corner Maseko and Mlangeni Streets, Bohlokong, Bethlehem

Workshops / Light Industrial

773

9

 

43

KUTLWANONG CORNER SHOPS

1294, Puma Street, Odendalsrus

Retail

1187

4

 

44

OOS EINDE MINI FACTORIES

Fritz Stockenstrom Street, East End, Bloemfontein

Workshops / Light Industrial

2156

16

 

45

MOAKENG

Tladi Street, Moakeng, Kroonstad

Retail

1528

12

 

46

HARVEY KORF

62 & 64 Harvey road, Oranjesig, Bloemfontein

Workshops / Light Industrial

3151

33

Place

No.

Building Name

Exact Area

Use

Lettable

Area M²

No. Units

NORTHERN

CAPE

47

GALESHEWE SHOPPING CENTRE

157 Tshwaragano, Galeshewe, Kimberley

Retail

947

10

 

48

LONG STREET JOINT VENTURE

Corner Long and Waterworks Streets, Kimberley

Retail / offices

1249

13

 

49

ROODEPAN

69 ‐ 83 Eagle Street, Roodepan, Kimberley

Retail

2051

13

 

50

ROSEBUDS SHOPPING CENTRE

Leeuwkop Street, Rosedal, Upington

Retail

1573

9

26 February 2018 - NW15

Profile picture: Kruger, Mr HC

Kruger, Mr HC to ask the Minister of Small Business Development

Whether her department has concluded any bilateral (a) agreements and/or (b) memoranda of understanding with any (i)(aa) national, (bb) provincial and (cc) local State entities and (ii) entities relevant to her department’s mandate to support small business development; if not, in each case, why not; if so, what are the relevant details in each case?”’

Reply:

(a)&(b) The Department of Small Business Development (DSBD) has concluded the following bilateral agreements and/or memoranda of understanding:

(i)(aa) DSBD agreements/Memoranda of Understanding with National Departments

No

Name of Department

Details

Date signed

1.

Department of Public Enterprises (DPE)

Market Access opportunities for SMMEs and Co-operatives in the SOCs procurement value chains.

01 December 2015

2.

Department of Tourism

Development of Start-ups, small and black operators and provide market access opportunities and relevant capacity building.

25 January 2016

3.

Department of Social Development (DSD)

Collaboration with the intention of taking social grants beneficiary out of indigent register through the creation of business opportunities and identification of appropriate markets and capacity building with particular focus on food security and cooperatives.

21 March 2016

4.

Department of Defence (DoD)

Facilitate Co-operatives registration and training, facilitate Co-operatives funding, and identification of earmarked commodities and services for SMMEs and co-operatives.

29 April 2016

5.

Department of Rural Development and Land Reform (DRDLR)

Development of rural and peri-urban enterprises and link them to specific programmes within DSBD agency network for support. DRDLR is responsible for Outcome 4 and specific legislation.

25 May 2016

(i)(aa) DSBD agreements/Memoranda of Understanding with National Departments (continued)

No

Name of Department

Details

Date signed

6.

Department of Telecommunications and Postal Services (DTPS)

Identification of enterprises that are developing new telecommunication ventures and technologies, link them to various support and market opportunities. DTPS developed a cabinet approved ICT SMME Strategy. Implementation has been linked to the partnership with SITA.

The recent GovTech Conference hosted by SITA, had a major focus on SMME’s in general across all Tracks, with a specific focus in the Economic Cluster Track facilitated by DSBD. The track focused on two of the key challenges facing SMME’s, namely; a lack of access to markets for SMME's and limited support for commercialisation of innovation by SMME’s. These deliberations yielded numerous outcomes with proposed delivery dates which will be driven by a task team.

2 September 2016

7.

Department of Labour (DoL)

Identify and support small businesses and cooperatives that can participate in the following: DoL training on safety programmes; and Productivity South Africa programmes. Identify SMMEs and cooperatives that are eligible to benefit from the DoL rescue programmes and DoL procurement opportunities. DoL has also offered free training to Informal Business.

26 October 2016

8.

Department of Public Works (DPW)

Development of Small Contractors and identify new markets such and property development and maintenance for participation by small businesses. In particular, the Department has successfully piloted and launched a model of creating businesses for beneficiaries exiting the Expanded Public Works Programme, setting them up with Cooperatives linking them with off-take agreements

4 April 2017

9.

Department of Science and Technology (DST)

To identify areas of technological support and improvement to enhance competitiveness and sustainability of SMMEs to access opportunities in both local and international market value chains. Co-funding ICT start-ups in the French-SA Tech Labs and will co- host the SMME and Innovation Fund.

13 June 2017

10.

Department of Environmental Affairs (DEA)

To develop SMME’s and Co-operatives that will partake in the value – chains of environmental sector (such as but not limited to the bio - prospecting, wildlife subsectors and waste sub – sectors). Cross-cutting opportunities identified in the Chemicals and Waste Economy Phakisa.

14 August 2017

(i)(bb) No agreement nor Memorandum of Understanding has been entered into by the DSBD with provincial entities.

(i)(cc) DSBD agreements/Memoranda of Understanding with Local State entities

No

Name of Municipality

Details

Date signed

1.

uGu District Municipality

To include four Abalimi Cooperatives to the municipal Integrated Development Plan so that the Cooperatives can be provided with support related to their bulk infrastructure needs; and further support the Cooperatives with financial and non-financial services, where applicable.

21 April 2017

2.

iLembe District Municipality

To include two Abalimi Cooperatives to the municipal Integrated Development Plan so that the Cooperatives can be provided with support related to their bulk infrastructure needs; and further support the Cooperatives with financial and non-financial services, where applicable.

18 April 2017

3.

DSBD and Ubuhlebezwe Local Municipality

Co-location Agreement with Municipality - Establishments of the Co-location points or one stop shop to provide financial and non-financial support to SMMEs and Cooperatives in collaboration with SEDA and SEFA.

8 November 2017

4.

DSBD and Langerberg Municipality

Co-location Agreement with Municipality - Establishments of the Co-location points or one stop shop to provide financial and non-financial support to SMMEs and Cooperatives in collaboration with SEDA and SEFA.

3 July 2017

(ii) DSBD agreements/Memoranda of Understanding with entities relevant to DSBD mandate

No

(b) Organisation

(d) Outcomes or envisaged outcomes of the agreements

Date signed

1.

Wholesale and Retail Sector Education and Training Authority (W&RSETA)

Support the implementation of the Informal Traders Upliftment Programme (ITUP) through relevant training and mentorship. Trained 1060 businesses in 2015/16.

30 March 2014

2.

Manufacturing, Engineering and Related Services Sector Education and Training Authority (MERSETA)

To provide capacity building for the informal businesses through the training and mentorship programmes within the manufacturing, engineering and related service sectors.

24 March 2016

3.

Road Traffic Infringement Agency

Selection of enterprises to manage pilot phase for Administrative Adjudication of Road Traffic Offences (AARTO) offices finalised.

Selection interviews were held in 10 cities country wide (Polokwane, Ekurhuleni, Durban, Mafikeng, Kimberley, Port Elizabeth, Mbombela, Cape Town and Bloemfontein).

30 June 2016

(ii) DSBD agreements/Memoranda of Understanding with entities relevant to DSBD mandate (continued)

(b) Organisation

(d) Outcomes or envisaged outcomes of the agreements

Date signed

4.

Johannesburg City Parks and Zoo (JCPZ)

Development of small scale service providers approved for contracts with JCPZ.

8 cooperatives from JCPZ were approved for Co-operatives Incentive Scheme (CIS). They were all assisted with equipment for grass cutting and a vehicle to the tune of R 350 000 per cooperative to service the contracts provided by JCPZ (grass cutting).

29 March 2017

5.

Energy and Water Sector Education and Training Authority (EWSETA)

To provide capacity building for the informal businesses through the training and mentorship programmes within the manufacturing, engineering and related service sectors

25 May 2017

23 February 2018 - NW187

Profile picture: Mulaudzi, Mr TE

Mulaudzi, Mr TE to ask the Minister of Small Business Development

(1)Whether (a) her department and/or (b) entities reporting to her procured services from a certain company (name furnished); if so, (i) what services were procured in each case and (ii) what is the total amount that was paid to the specified company in each case; (2) whether the specified company provided services related to international travel to (a) her department and/or (b) entities reporting to her; if so, (i) what is the name of each person who travelled, (ii) what was the travel route and (iii) what is the total amount that was paid for each person?”

Reply:

1(a) Department of Small Business Development

The DSBD does not have a contract with Travel with Flair and has therefore not procured services from this company.

  1. Not applicable.
  2. Not applicable.

1(b) Small Enterprise Development Agency (SEDA)

(i)&(ii) Yes, SEDA has procured services from Travel With Flair as follows:

Services paid for (2016/2017) through

Amount

International Air Cost

R 532,164.37

Domestic Air Cost

R 3,840 333.21

International Accommodation

R 306 102.98

Domestic Accommodation

R 2,719 652.26

Car Rental

R 784 299.38

Shuttle

R 196 153.02

Conference Fees

R 3,968 498.85

Grand Total

R 12,347 204.07

Management Fees paid to Travel With Flair by SEDA

R 659 261.98

1(b) Small Enterprise Finance Agency (SEFA)

SEFA has procured services from Travel with Flair.

(i)&(ii) Travel Services (Flight, Accommodation, Car Hire and Shuttle Services) as follows:

Item

Amount

Domestic Air Travel

R 1, 109,313.00

Domestic Accommodation

R 588,269.00

Car Hire

R 325,878.00

Transfers

R 97,996.00

International Air Travel

R 16,622.00

Insurance and Meals (Int Travel)

R 1,296.00

Grand Total

R 2,139,374.00

Management Fees paid to Travel With Flair by SEFA

R91, 200.00

2(a) DSBD

  1. Not applicable.
  2. Not applicable.

2(b) SEDA

INTERNATIONAL TRIPS (2016/17) procured from Travel With Flair

(i) Travellers Name

(ii) Travel route - Destination

Travel Date

(iii) Amount

Dlamini Mduduzi

JHB/United Arab Emirates/Kuala Lumpur/United Arab Emirates/JHB

3 February 2017

R13,917.23

Gwamanda Bongani

JHB/Rwanda/JHB

24 October 2016

R41 284.23

Jaftha Tervern

JHB/Atlanta/Orlando(USA)/JHB

15 April 2016

R32 278.23

Jobodwana Buntu

JHB/Paris/Barcelona/Paris/JHB

01 May 2016

R34 047.23

Kalaote Keitumetse

JHB/Ethopia/Israel/Ethopia/JHB

18 June 2016

R12 738.23

Koka Kwathi

JHB/Ethopia/Israel/Ethopia/JHB

18 June 2016

R12 738.23

Leshou Colin

JHB/Frankfurt/Paris/JHB

08 July 2016

R76 356.18

Luhabe Mendu

JHB/Singapore/Kuala Lumpur/Singapore/JHB

15 May 2016

R29 427.23

Makgwale Ambrose

JHB/Singapore/Kuala Lumpur/Singapore/JHB

15 May 2016

R28 181.23

Maleka Lebogang

JHB/United Arab Emirates/Paris/United Arab Emirates/JHB

17January 2017

R36 639.38

INTERNATIONAL TRIPS (2016/17) procured from Travel With Flair (continued)

(i) Travellers Name

(ii) Travel route - Destination

Travel Date

(iii) Amount

Maloka Caswell

JHB/United Arab Emirates/Kuala Lumpur/United Arab Emirates/JHB

26 November 2016

R17 334.92

Mkhize Yolisa

JHB/Atlanta/JHB

12 December 2016

R175 766.99

Molopyane Kelebogile

JHB/Atlanta/Orlando(USA)/JHB

15 April 2016

R38 368.23

Motloung Sibongile

JHB/Dubai/USA/Dubai/JHB

16 July 2016

R48 068.23

Mpalami Thabang

JHB/United Arab Emirates/Paris/United Arab Emirates/JHB

03 February 2017

R33 759.66

Njenge Yandisa

JHB/Paris/Viale Galileo Galilei/Paris/JHB

12 December 2016

R53 782.23

Njenge Yandisa

JHB/Singapore/Kuala Lumpur/Singapore/JHB

15 May 2016

R84 426.23

Slabbert Koenie

JHB/Kenya/Guangzhou/Kenya/JHB

07 October 2016

R10 273.23

Tshikwatamba Nondumiso

JHB/Paris/Viale Galileo Galilei/Paris/JHB

15 December 2016

R58 880.23

Grand Total

 

 

R838 267.35

2(b) SEFA

2(i) Traveller’s Name

2(ii) Route

Travel Date

2(iii) Amount

Don Mashele

JHB-Dubai-Moscow-Dubai-JHB (air tickets)

04 April 2014

R8, 671.00

Sipho Marala

JHB-Dubai-Moscow–Dubai-JHB (air tickets)

04 April 2014

R8, 671.00

Don Mashele and Sipho Marala

JHB-Dubai-Moscow-Dubai-JHB (Insurance)

04 April 2014

R720.00

Don Mashele and Sipho Marala

JHB-Dubai-Moscow-Dubai-JHB (Meals)

04 April 2014

R576.00

Grand Total

   

R18,638.00

13 December 2017 - NW313

Profile picture: Chance, Mr R

Chance, Mr R to ask the Minister of Small Business Development

(1)Whether she has met the newly appointed Chief Executive Officer of the joint private and public sector fund established by the private sector and Government under the auspices of National Treasury to support small businesses; if not, why not; if so, what was the outcome of the specified meeting in terms of the level of agreement and cooperation envisaged between Government and the private sector in the specified fund’s investment strategy; (2) with reference to (a) her reply to question 1628 on 23 June 2016 and (b) the reply of the Minister of Finance to question 1629 on 7 July 2016, what progress has Government made in committing public money to the specified fund in the 2017-18 national budget?”

Reply:

1. The Minister has met with the Chief Executive Officer. The outcome of the meeting was that the Department of Small Business Development (DSBD) together with the Small Enterprise Development Agency (SEDA) and the Small Enterprise Finance Agency (SEFA) will discuss possible areas of cooperation to include amongst other things, mentorship, sharing of research, the ecosystem analysis, etc. Furthermore, it was also agreed that a workshop/summit to discuss available finance for SMMEs in both public and private sector shall be conducted.

2. Government did an analysis on the focus as well as the terms and conditions of the Fund established through the CEO Initiative. Research on the ecosystem conducted by the Department shows that there is limited funding that is available for enterprises that are at an ideation, proof of concept and early start-up phase, and this is the category that is not going to be supported by the fund set up through the CEO initiative. Therefore, government will proceed with its plans of setting up a fund that will address this particular gap in the market and to ensure that Radical Economic Transformation is realised. National Treasury will be best positioned to respond regarding the exact dates of committing funding to the Enterprise Development Fund that government is working on.

04 December 2017 - NW3106

Profile picture: Kruger, Mr HC

Kruger, Mr HC to ask the Minister of Small Business Development

(a) What total number of transversal agreements has her department signed with other departments and/or entities, (b) with which departments and/or entities were the specified agreements signed, (c) what did the agreements consist of and (d) what were the outcomes or envisaged outcomes of the agreements in each case?”

Reply:

a) The Department of Small Business Development (DSBD) has entered into 28 partnership agreements to date. The institutions partnered with encompass public, private and international organisations. The composition is as follows:

Type

No

i) Public/Government Entities

15

ii) Private entities

8

iii) International Organizations

5

(b)&(d) Details of agreements are as follows:

(i) Public / Government entities signed agreements

No

(b) Name of Department /Entity

(d) Outcomes or envisaged outcomes of the agreements

1.

Department of Public Enterprises (DPE)

Market Access opportunities for SMMEs and Co-operatives in the SOCs procurement value chains.

2.

Department of Tourism

Development of Start-ups, small and black operators and provide market access opportunities and relevant capacity building.

3.

Department of Social Development (DSD)

Collaboration with the intention taking social grants beneficiary out of indigent register through the creation of business opportunities and identification of appropriate markets and capacity building.

4.

Department of Defence (DoD)

Facilitate Co-operatives registration and training, facilitate Co-operatives funding, and identification of earmarked commodities and services for SMMEs and co-operatives.

5.

Department of Rural Development and Land Reform (DRDLR)

Development of rural and peri-urban enterprises and link them to specific programmes within DSBD agency network for support.

6.

Road Traffic Infringement Agency

Selection of enterprises to manage pilot phase for Administrative Adjudication of Road Traffic Offences (AARTO) offices finalised.

Selection interviews were held in 10 cities country wide (Polokwane, Ekurhuleni, Durban, Mafikeng, Kimberley, Port Elizabeth, Mbombela, Cape Town and Bloemfontein).

7.

Department of Telecommunications and Postal Services (DTPS)

Identification of enterprises that are developing new telecommunication ventures and technologies, link them to various support and market opportunities. This has been linked to the partnership with SETA.

The recent GovTech Conference hosted by SITA, had a major focus on SMME’s in general across all tracks with a specific focus in the Economic Cluster track facilitated by DSBD. The track focused on two of the key challenges facing SMME’s, namely: a lack of access to markets for SMME's and limited support for commercialisation of innovation by SMME’s. These deliberations yielded numerous outcomes with proposed delivery dates which will be driven by a task team.

8.

Department of Labour (DoL)

Identify and support small businesses and cooperatives that can participate in the following: DoL training on safety programmes; and Productivity South Africa programmes. Identify SMMEs and cooperatives that are eligible to benefit from the DoL rescue programmes and DoL procurement opportunities. DoL has also offered free training to Informal Business.

9.

Department of Public Works (DPW)

Development of Small Contractors and identify new markets such and property development and maintenance for participation by small businesses. In particular, the Department has successfully piloted and launched a model of creating businesses for beneficiaries exiting the Expanded Public Works Programme, setting them up with Cooperatives linking them with off-take agreements

10.

Department of Science and Technology (DST)

To identify areas of technological support and improvement to enhance competitiveness and sustainability of SMMEs to access opportunities in both local and international market value chains. Co-funding ICT start-ups in the French-SA Tech Labs and will co- host the SMME and Innovation Fund.

11.

Department of Environmental Affairs (DEA)

To develop SMME’s and Co-operatives that will partake in the value – chains of environmental sector (such as but not limited to the bio - prospecting, wildlife subsectors and waste sub – sectors). Cross-cutting opportunities identified in the Chemicals and Waste Economy Phakisa.

12.

Johannesburg City Parks and Zoo (JCPZ)

Development of small scale service providers approved for contracts with JCPZ.

8 cooperatives from JCPZ were approved for Co-operatives Incentive Scheme (CIS). They were all assisted with equipment for grass cutting and a vehicle to the tune of R 350 000 per cooperative to service the contracts provided by JCPZ (grass cutting).

13.

Manufacturing, Engineering and Related Services Sector Education and Training Authority (MERSETA)

To provide capacity building for the informal businesses through the training and mentorship programmes within the manufacturing, engineering and related service sectors.

14.

Wholesale and Retail Sector Education and Training Authority (W&RSETA)

Support the implementation of the Informal Traders Upliftment Programme (ITUP) through relevant training and mentorship. Trained 1060 businesses in 2015/16.

15.

Energy and Water Sector Education and Training Authority (EWSETA)

To provide capacity building for the informal businesses through the training and mentorship programmes within the manufacturing, engineering and related service sectors

(ii) Private entities signed agreements

No

(b) Organisation

(d) Outcomes or envisaged outcomes of the agreements

1

South African Breweries (SAB) Miller

  • Provide access to financial resources primarily through the WiM grant fund while leveraging;
  • Develop skills of women farmers operating in underserved communities through training and mentorship;
  • Share information for the benefit of the farmers;
  • Increase farmer technical expertise for improved market competence;
  • Provide access to market by guaranteeing purchase of apt output;
  • Improve community livelihoods by increasing income;
  • Form strengthened and sustainable co-operatives;
  • Increase inclusion of Black Women Owned entities in SAB’s supply chain; and
  • Stimulate local economies by increasing procurement from local suppliers.

Crop 16:

  • 1887 hectares planted.
  • 4 Provinces participated: North West, Mpumalanga, KwaZulu Natal and Gauteng.
  • 11 farmers : 7 women.

Crop 17 :

  • 32 Women owned Cooperatives were supported from the programme.
  • 4 Provinces participated in Crop 17: Gauteng, Mpumalanga, Kwa-Zulu Natal and North West.
  • Total Hectares planted for crop 17 = 1011.
  • Planted in October 2016.
  • A total of 160 jobs were created.

Only 2 out of 13 farmers/coops harvested. Others will commence late June/early July 2017. Awaiting Farmsol to provide a financial report indicating their profit/loss. The 5 selected as part of Pick N Pay Supplier Development Programme failed to qualify for BBSDP due to inadequate financial performance.

DSBD will alternatively facilitate funding through Start-up Enterprise Development Programme (SEDP).

2

Pick n Pay

To facilitate mentorship and coaching programmes for the development of the identified businesses and to build their institutional capacity; and facilitate market access linkages.

10 SMMEs have been identified and the list completed to link and Cooperatives linked to Pick ‘n Pay Procurement Opportunities.

3

International Labour Organization (ILO)

To provide technical assistance to the department to implement strategic projects such as SMME database, Chamber support programme, Red tape reduction and the Provincial Informal Business summits.

4

Bakgatla Tribal Authority

To establish a relationship with the Bakgatla Bagafela Tribal Authority to identify and support small businesses through our agency support network.

5

AfriGrow

To tab into the organisation’s capacity and expertise to enhance the development of SMMEs and Cooperatives in the agricultural sector.

6

Rustenburg Platinum Mines (PTY) Ltd

Leverage on the Enterprise and Supplier Development and Corporate Social Investment programmes to develop enterprises and social upliftment in the surrounding communities. A recent tripartite arrangement made with Anheuser-Busch (AB) InBev to plough barley in the Tribal authority land in the said communities. Anglo Platinum has invested R45 Million for this project.

Anglo through the tribal authority has committed 320 hectors to AB Inbev to plant barley.

Negotiations on-going between DSBD, Anglo Platinum and AB Inbev in line with planting barley.

7

Sumitomo Rubber South Africa Pty (ltd)

To establish new businesses through containers that would provide tyres fitment and repair services. The current target is 33 businesses that comprise 20 containers and 13 express in targeted provinces (North West, Limpopo, Northern Cape and Eastern Cape).

8

NESTLE

To establish new businesses and support the existing ones by providing distribution opportunities of the Nestle products to informal retailers by SMMEs and cooperatives. The target for this financial year is 50 micro distributors with ultimate support of 350 enterprises by 2019. To date 43 have already been selected.

  • To support to co-operatives and SMMEs through its various programmes, such as its Enterprise Development Programmes.
  • Development of a “Route to Market” for the enterprises.

Provincial Workshops:

Holding of provincial workshops held on 05 June 2017 for North West, Mpumalanga, KwaZulu Natal, Western Cape, Eastern Cape and 09 June 2017 in Limpopo Province and Gauteng;

43 applications submitted for SEDP funding

(iii) International Organisations signed agreements

No

(b) Organisation

(d) Status: Implementation Plan

1

The Netherlands Government

  • Promotion of the development and growth of New Generation Cooperatives; Promotion of trade between South Africa and Netherlands;
  • Provisioning of technical assistance to support the development of infrastructure to improve market efficiencies; and
  • Assistance with education and technical training of cooperative members.

2

Deutschen Gernossenschafts – Fund Raiffenisenverband (DGRV)

Provisioning of Cooperative Governance and Book Keeping Training.

3

United Nations Development Programme (UNDP)

  • Access to markets and capacity building for suppliers;
  • Technical Assistance and support to DSBD capacity building activities;
  • Access to finance for existing small businesses and cooperatives and potential suppliers; and
  • Joint resource mobilisation for the Supplier Development Programme (SDP).

4

UN WOMEN

Market Access, Funding and Capacity Building for women SMMEs and Coops to access opportunities across various industries.

5

Masisizane Fund (MF)

Leveraging on the resources of each party and work together for the benefit of SMME’s and Co-operatives to benefit from MF Post Investment Programmes, soft loans and capacity building. DSBD will also consider projects supported by MF from various incentive schemes.

A list of 29 projects has been consolidated for DSBD consideration (SMME’s and Co-operatives incentives). MF will be submitting 13 Co-operatives Incentive (CIS) application forms for all the Co-operatives they’ve supported for grant funding. DSBD is in a process of compiling SMME’s and Co-operatives to benefit from MF various Programmes; UJ is in a process of compiling business cases of SMMES that were referred by DSBD to be submitted at MF.

(c) The department signed agreements with public and private entities in order to provide both financial and non-financial support to SMMEs and Co-operatives, and they consist mainly of:

  • Market opportunities in the procurement value chain;
  • Funding; and
  • Capacity building.

04 December 2017 - NW1876

Profile picture: Mulaudzi, Mr TE

Mulaudzi, Mr TE to ask the Minister of Small Business Development

Whether (a) her department and (b) each entity reporting to her appointed transaction advisors for tenders in the period 1 January 2012 to 31 December 2016; if so, (i) who were the transaction advisors that were appointed for the tenders, (ii) for which tenders were they appointed, (iii) what was the pricing for the tenders in question and (iv) what amount were the transaction advisors paid?

Reply:

The response uses the perspective of Transaction Advisors in the context of financial advisors, accountants, business deal advisors, banks, insurance advisors, contract lawyers etc.

a) The Department of Small Business Development (DSBD)

Not applicable to DSBD in relation to financial transactions recorded on the financial systems.

b) Entities

Small Enterprise Development Agency (SEDA)

SEDA has not appointed transactional advisors for tenders for the period 1 January 2012 to 31 December 2016.

 

Small Enterprise Finance Agency (SEFA)

2014/2015 Financial Year

No

(i) Transactional Advisors/ Successful Bidder Name

(ii) Details

(iii) Pricing

(iv) Amount Paid

   

Tender Number

Description

Tender Amount (VAT Incl)

 

1

Ethoss Performance Management (Pty) Ltd

FIN/003/2014

Appointment of a Financial Modelling

R1 937 480.16

(Expansion R306 743.22.00)

R 2 244 223.38

2015/2016 Financial Year

No

(i) Transactional Advisors/ Successful Bidder Name

(ii) Details

(iii) Pricing

(iv) Amount Paid

   

Tender Number

Description

Tender Amount (VAT Incl)

 

1

1. Phakamani Debt Collection

2. Revenue Consulting

3. Ramatshila -Mugeri

4. IDP Tracing Service

5. Asili Risk Management

6. Kunene Ramapala

000/LEG/2015

Appointment of Debt Collection Agencies

Commission based Contract 15% exc VAT

R764 668.57

Refer to Annexure A, Table 1 for further details.

2

Matlotlo Group (Pty) Ltd

012/KCG/215

Appointment of service provider for Actuarial Service for Khula Credit Guarantee for period of three (3) years

R 1 855 350.00

R 1 009 430.10

3

Continuity SA (Pty) Ltd

013/CRO/2015

Appointment of External Business Continuity Management Service Provider

R 456 000.00

R 456 000.00

FY 2016/2017 Financial Year

No

(i) Transactional Advisors/ Successful Bidder Name

(ii) Details

(iii) Pricing

(iv) Amount Paid

   

Tender Number

Description

Tender Amount (VAT Incl)

 

1

Mthente Research Projects

08/CRO/2016

Conducting Annual Review of Small Business & Cooperatives

R 1 250 516.92

R 625 258.48

2

Panel of Mentors

07/PIM/2016

Panel of Mentors

Based on approved Professional Rate

R 511 655.45

 

04 December 2017 - NW3283

Profile picture: Chance, Mr R

Chance, Mr R to ask the Minister of Small Business Development

With reference to her reply to question 2505 on 6 October 2017, in which she referred to the 2016 Annual Review on the Status of Small Business and Co-operatives in South Africa, (a) what are the terms of reference of the review, (b) when was the review commissioned, (c) by which date will the findings of the review be reported and (d) who is conducting the review?

Reply:

a) The terms of reference of the 2016 Annual Review provides an overarching review of trends in the small business economy and is supported by detailed statistics. In doing so, the 2016 Annual Review provides an assessment of the performance of the SMME and cooperative sectors. In this regard, the 2016 Annual Review provides a profile of economic (contribution to Gross Domestic Product, Employment, Import and exports), demographic (population group, gender, age, educational level and location) indicators coupled with the number of small businesses and cooperatives in South Africa.

In addition, the 2016 Annual Review should provide a comprehensive exposition of the needs, challenges and opportunities facing the small business and cooperative sector. In terms of challenges this will include, the impact of the challenges and measures employed to cope thereof. With respect to needs, the review will cover, inter alia, access to financial and non-financial support and market access.

(b) The 2016 Annual Review was commissioned in January 2017.

(c) A draft has been compiled and will be presented to the Executive Committee of the Department of Small Business Development on 20 November 2017 and will be finalised by the end of November 2017 thereafter the report will be submitted to the Minister for consideration.

(d) The 2016 Annual Review is being conducted by Mthente Research and Consulting Services.

16 November 2017 - NW3300

Profile picture: Mulaudzi, Mr TE

Mulaudzi, Mr TE to ask the Minister of Small Business Development

(1) Whether the (a) chief executive officer and (b) chief financial officer of entities reporting to her are employed on a permanent basis; if not, (2) whether the specified officers are employed on a fixed term contract; if so, (a) what are the names of each of the officers and (b) when (i) was each officer employed and (ii) will each officer’s contract end?

Reply:

1(a) Chief Executive Officers employment period:

SEFA

The Chief Executive Officer (CEO) of SEFA, Mr Thakhani Makhuvha is employed by Industrial Development Corporation (IDC).

SEDA

The CEO of SEDA, Ms Mandisa Tshikwatamba is appointed on five year fixed contract.

1(b) Chief Financial Officers employment period:

SEFA

The Chief Financial Officer (CFO) of SEFA, Ms Reshoketswe Ralebepa is appointed on a five (5) year fixed term contract period.

SEDA

The CFO of SEDA, Mr Norman Mazizi is employed on five year fixed contract.

(2) Details of contracts

(2)(a) Names of Officers

Details of contract

(2)(i)Starting date

(2)(ii)Ending date

Mr Thakhani Makhuvha

Mr Makhuvha, employed by Industrial Development Corporation (IDC), was seconded to SEFA for a three-year (3) period.

1 November 2012

31 October 2015

 

His secondment was further extended by three years.

1 November 2015

31 October 2018

Ms Mandisa Tshikwatamba

Appointed on a five year fixed contract.

1 August 2016

31 July 2021

Ms Reshoketswe Ralebepa

Appointed on a five year fixed contract.

1 October 2015

30 September 2020

Mr Norman Mazizi

Appointed on a five year fixed contract.

1 March 2015

29 February 2020

14 November 2017 - NW3515

Profile picture: Chance, Mr R

Chance, Mr R to ask the Minister of Small Business Development

With reference to the Minister of Finance’s Medium-Term Budget Policy Statement delivered in the National Assembly on 25 October 2017, where mention was made of a fund for start-up businesses, (a) by which date will the specified fund be operational, (b) what amount will be injected into the fund, (c) where will the money come from, (d) who will manage the fund, (e) will it have any connection to the Small and Medium-sized Enterprises Fund established by the Chief Executive Officer Initiative, (f) will it operate as a separate Development Finance Institution and (g) what will its financial mandate be in terms of (i) return on investment and (ii) profitability?

Reply:

a) The Fund will be operational during 2018/19 financial year but the planned disbursement of the funding will be the beginning of 2019/2020 financial year.

b) An allocation of R1 Billion has been communicated to the Department of Small Business Development.

c) The money will come from the national fiscus.

d) The Department of Small Business Development together with National Treasury and Department of Science and Technology are working with the Government Technical Advisory Centre (GTAC) to develop the architecture of the Fund where issues around the management of the Fund will be considered.

e) The SA SME Fund established by the CEO Initiative is targeting high growth businesses whereas our research on the ecosystem shows that there is a lack of funding of enterprises that are at an ideation and early start-up phase which will be the target of the Fund. The Department together with its agencies are engaging with SA SME Fund to identify areas of collaboration on other matters which include sharing research, mentorship and training of enterprises on financial management.

f) The work that is being undertaken through GTAC will assist government to decide on how the fund will operate but the government is conscious of the economic environment and would not look at setting up a completely new structure that will add to operational costs.

g) The financial mandate of the fund will be informed by the exercise that is being conducted through GTAC, but government is looking at having this fund as a soft loan which will provide affordable finance to small businesses and the emphasis will be more on ensuring that the Fund is sustainable rather than profit maximisation.

14 November 2017 - NW3282

Profile picture: Chance, Mr R

Chance, Mr R to ask the Minister of Small Business Development

With reference to her reply to question 2398 on 6 October 2017, regarding the appointment of members of the National Small Business Advisory Council and her reply to question 2569 on 6 October 2017, in which she states that nominations for these advertised positions closed on 3 September 2015, (a) why has she not made the appointments for a period of more than two years and (b) by which date does she expect to make the specified appointments?”

Reply:

(a) The process of appointing members had its complications which amongst other things included delays in verifying criminal records, qualifications of some of the nominated members as they were out of the country for long periods. There was also a process undertaken to broaden the composition of candidates to include those with background and experience in Cooperatives Development.

(b) The final list of nominations has been concluded and it is expected that the appointments shall be made in the last quarter of 2017/18 including induction of members. The new members shall be inaugurated to the Advisory Council on the 1 April 2018.

14 November 2017 - NW2898

Profile picture: Hoosen, Mr MH

Hoosen, Mr MH to ask the Minister of Small Business Development

What is the detailed (a) breakdown of and (b) valuation for current and non-current assets and investments held by (i) her department and (ii) each entity reporting to her according to (aa) listed assets (aaa) directly held and (bbb) indirectly held and (bb) unlisted investments (aaa) directly held and (bbb) indirectly held by each of the entities, in each case breaking the current assets and investments down by 0-3 months, 3-6 months, 6-12 months and beyond 12 months?”

Reply:

a) Department of Small Business and Development (DSBD)

Details

(a) Breakdown

(b) Valuation

Item

Name /Type

Specification

(Current / non-current)

(0-3 months)

(3-6 months)

(6-12 months)

(Beyond 12 months)

 

(aa) LISTED ASSETS

(aa) Listed assets in reference to (aaa) directly

Not applicable

 

(aa) Listed assets in reference to (bbb) indirectly

Not applicable

(bb) UNLISTED INVESTMENTS

(bb) Unlisted investments in reference to (aaa) directly

Not applicable

 

(bb) Unlisted investments in reference to (bbb) directly

Not applicable

b) (i) Entity: Small Enterprise Development Agency (SEDA)

Details

(a) Breakdown

(b) Valuation

Item

Name /Type

Specification

(Current / non-current)

Breakdown

(0-3 months)

Breakdown

(3-6 months)

Breakdown

(6-12 months)

Breakdown

(Beyond 12 months)

 

(aa) LISTED ASSETS

(aa) Listed assets in reference to (aaa) directly

Not applicable

 

(aa) Listed assets in reference to (bbb) indirectly

Not applicable

(bb) UNLISTED INVESTMENTS

(bb) Unlisted investments in reference to (aaa) directly

ABSA Call Account

Current

R 66 092 057

     

R 66 092 057

 

(bb) Unlisted investments in reference to (bbb) directly

Not applicable

c) (ii) Entity: Small Enterprise Finance Agency (SEFA)

Details

(a)

(b)

Item

Name /Type

Specification

(Current / non-current)

Breakdown

(0-3 months)

Breakdown

(3-6 months)

Breakdown

(6-12 months)

Breakdown

(Beyond 12 months)

Valuation

(aa) LISTED ASSETS

(aa) Listed assets in reference to (aaa) directly

Not applicable.

 

(aa) Listed assets in reference to (bbb) indirectly

Not applicable

(bb) UNLISTED INVESTMENTS

(bb) Unlisted investments in reference to (aaa) directly

Associates

Non-current

     

R 128 622 368

R 128 622 368

   

Investments

       

R 36 964 865

R 31 964 865

   

Joint Operations

       

R 29 000 000

R 29 000 000

   

Joint Ventures

       

R 194 213 072

R 163 872 781

   

Subsidiaries

       

R 129 201 028

R 106 189 103

 

Loans and advances

Loans and advances

Non-current

     

R 1 197 449 987

R 616 201 761

   

Rental debtors

Current

     

R 73 087 645

R 17 790 380

 

Investment properties

Loans and advances

Non-current

     

R 190 444 353

R 190 444 353

09 November 2017 - NW311

Profile picture: Chance, Mr R

Chance, Mr R to ask the Minister of Small Business Development

What amount of funding has the African Development Bank provided for her department’s Expression of Interest on an Enterprise Development Pilot Project Supporting Local Economic Development (ADB/BD/WP/2016/0142) project, (b) why does the timeframe for the specified project only extend to two years in view of the urgent need to develop the local economies of the six districts mentioned in the specified project, (c) to what extent will the specified project be expanded to other municipalities once the pilot project is completed and (d) why is the pilot project confined to former mining towns only?”

Reply:

a) The Enterprise Development Pilot activities are divided between the dti and the DSBD. The total budget for the entire project is R 23 754 129 inclusive of the other activities undertaken by the dti and the amount allocated for the Enterprise Development Pilot Project Supporting Local Economic Development (ADB/BD/WP/2016/0142) is R 11 949 756.

b) The project will extend for only two years because the type of the intervention that will be implemented in these six districts will take a period of two years.

c) Depending the outcomes of the pilot project and budget availability the project will be extended to other municipalities.

d) During the discussions that took place between the Bank and the dti at the time, the agreement that was reached was that because of limited funding that was available the projects identified should be those that have a potential of having a higher impact. The former mining towns are the worst affected by the economic decline and therefore these were prioritized following the establishment of the Inter Ministerial Committee on Revitalising Distressed Mining Communities. The intention of the project is to provide capacity building support for municipalities and local stakeholders to enable them to work together to explore diversification of economic activities post-closer of mines and to further revitalize the economic activities in these mining towns.

09 November 2017 - NW3017

Profile picture: Hoosen, Mr MH

Hoosen, Mr MH to ask the Minister of Small Business Development

(1)What is the (a) total amount that was paid out in bonuses to employees in her department and (b) detailed breakdown of the bonus that was paid out to each employee in each salary level in the 2016-17 financial year; (2) what is the (a) total estimated amount that will be paid out in bonuses to employees in her department and (b) detailed breakdown of the bonus that will be paid out to each employee in each salary level in the 2017-18 financial year?”

Reply:

(1)(a) Total amount paid: R 1 069 175,43 – inclusive of all payments made during the 2016-17 financial year.

(b) Breakdown of bonuses paid in the 2016-17 financial year:

SURNAME AND INITIALS

SALARY LEVEL

AMOUNT (R)

BALOYI IT

5

12,276.63

CETSHWAYO SI

5

12,276.63

JIYANE BS

7

17,665.02

TSHIKHUDO PA

10

32,549.31

TSHIKHUDO PA (2013-14)

10

20,261.34

HLABIOA TP

11

66,424.86

DAMON RPL

8

22,600.62

SEHLAKO PM

10

35,590.05

MABUNDA ET

7

17,930.16

NOGOMBA K

10

34,545.96

MASHISHI ET

3

8,926.47

THINANE JT

5

12,276.63

CHAUKE AL

10

33,532.92

CRONJE M

8

39,018.42

LEBAEA TI

10

33,036.93

MOLEKO EM

12

62,584.11

PHIRI ET

7

17,665.02

MPUTA NJN

8

23,632.83

DLAMINI NT

10

35,590.05

MKAZA NS

12

60,748.11

MSHUDULU VJ

12

60,748.11

DOLO TV

8

23,987.07

MAHLANGU AM

6

15,414.57

MAMPANE DT

8

23,987.07

MATHABATHE MC

10

35,590.05

MOGANE SL

8

23,632.83

SEKEE ME

7

27,891.36

KOMETSI ME

8

22,600.62

MABENA RP

8

24,347.25

MALOKA SVK

8

22,266.90

MATHONSI P

10

35,064.36

MOKAILA ML

12

61,659.63

MOSHOESHOE ET

8

22,600.62

NETSHIVHAMBE M

8

22,939.47

NKADIMENG RM

8

22,600.62

NSIMBINI ZM

8

24,712.83

GRAND TOTAL

1,069 175.43

(2)(a) Estimated amount that will be paid out in bonuses cannot exceed 1.5% of the compensation of employees. The 2017/18 original allocation is R137,452,000 and the 1.5% translates into R2,061,780.

(b) The Department will finalise the moderation process by the end of October 2017. The submissions will be drafted for approval and the final lists can only be made available after approval.

 

27 October 2017 - NW2399

Profile picture: Kruger, Mr HC

Kruger, Mr HC to ask the Minister of Small Business Development

What are the full details of the (a) turnover, (b) profitability and (c) number of jobs created through her department’s National Gazelles Programme for its 2015-16 financial year intake for each of the 40 selected small-, medium- and micro-sized enterprises that participated?

Reply:

(a) Turnover and (b) Profitability

The information provided in this response comprises the performance in percentages of all companies participating in the Gazelles programme (grouped by sectors). This response meets what the Small Enterprise Development Agency (SEDA) and the Department of Small Business Development (DSBD) can issue as public information limited by provisions of the Protection of Personal Information Act (POPIA). POPIA disempowers the Department and the implementing Agency on reporting on what may be viewed as a public domain, individual companies’ information which include profits and turnovers, release of such would have to be issued with written consent from respective companies.

The turnover and profitability figures fluctuate from month to month. Noted factors that contributed to the negative growth are as follows:

  • Cyclical products that have low turnover during certain seasons and pick up thereafter.
  • Product mix, especially with companies in the construction sector (short term contract more profitable than long term contracts).
  • Government business which tends to peek in February-March of each year.
  • Companies not always updating their information on the system on time.

The table below depicts turnover and profitability figures per sector grouping all 40 companies for period April 2016 to March 2017.

a) Turnover results per sector grouping of the 40 companies in the programme see the link below

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2399Turnover-171026.pdf

b) Profitability

Profitability results per sector grouping of the 40 companies in the programme see the link below

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2399Profitable-171026.pdf

c) Staff numbers = Jobs per company

As reported before, staff numbers have increased by 4% from 1068 to 1112 for 9 months to December 2016. The table below depicts employee numbers for each company.

SECTOR

COMPANY

Fulltime

Part time

Total

Fulltime

Part time

Total

Agriculture and Agro-Processing

Comessa Food Services

36

1

37

36

1

37

 

Fawakhe Trading cc

3

0

3

4

1

5

 

Roses for u

24

0

24

24

0

24

Construction

F-F Engineering (AIRCONDITIONING)

38

4

42

48

2

50

 

Lakeshore Trading 102

30

68

98

30

69

99

 

Ordained Trading

15

28

43

15

28

43

 

TCM Developments (Pty) Ltd

73

0

73

73

0

73

Energy and Green Economy

Conretype (Pty) Ltd

   

0

   

0

 

Cybronix (Pty) Ltd

2

0

2

2

0

2

 

iGreens

4

1

5

4

0

4

 

Gridbow Engineers & Technical Services

10

15

25

10

15

25

 

Ugesi Africa Consulting

6

2

8

6

2

8

Health and Bio-Sciences

Deline Investments(Pty) Ltd

1

0

1

38

0

38

 

Natural Medicinal Services

8

1

9

8

1

9

 

Omy Naidoo Pty Ltd

3

1

4

3

1

4

Information and Communication Technologies

Bayajula (Pty) Ltd

16

135

151

16

136

152

 

Digital Republic Consulting (Pty) Ltd

15

0

15

14

1

15

 

Lan Telecoms

28

6

34

28

1

35

 

Memeza Shout (Pty) Ltd

5

0

5

6

8

14

 

Pretend cc

   

0

   

0

 

Wam technology cc

21

0

21

21

0

21

 

Xspark

4

1

5

6

0

6

Management and Consulting

Futurent Consulting solutions(Pty) Ltd

9

0

9

9

0

9

Manufacturing

Amphiguard Brickyard

55

0

55

55

 

55

 

Buttercup trading 47cc

4

0

4

4

2

6

 

Bronscor

11

0

11

 

10

0

 

ECO Furniture Designs cc

27

3

30

27

3

30

 

Fred Footwear

50

0

50

50

5

55

 

National Adhesive Manufactures cc

9

0

9

9

0

9

 

Prothane Industrail cc

22

0

22

31

0

31

 

Umzungulu Windows (Pty) Ltd

26

4

30

37

0

37

Mining, Metals and Engineering

Brimis Engineering

10

0

10

10

2

12

 

Modi Mining cc

152

2

154

152

2

154

Tourism

Tzaneen Country Lodge cc

63

0

63

39

0

39

 

Vaalnest Bout Hotel

16

0

16

11

0

11

Transport and Logistics

DC Mobile Forklift mechanics

   

0

   

0

 

 Total

   

1 068

   

1 112

These numbers will be updated when a second benchmarking exercise is taken in November 2017.

25 October 2017 - NW2557

Profile picture: Lekota, Mr M

Lekota, Mr M to ask the Minister of Small Business Development

(1)What are the circumstances that have resulted in the delay experienced by the Small Enterprise Development Agency (SEDA) in eThekwini Metropolitan Municipality in KwaZulu-Natal in receiving grant funding for the 2017-18 financial year, as a consequence of not having received funding from national coffers; (2) what has been the delay in renewing the memorandum of understanding between the national SEDA and eThekwini Metropolitan Municipality; (3) whether she intends to (a) intervene in this matter and/or (b) visit the centre to gain an understanding and an appreciation of the work being undertaken?”

Reply:

1. SEDA eThekwini is independent from SEDA and is a Non Profit Company with its own Board of Directors. As one of the funders of SEDA eThekwini, SEDA had a fixed term funding relationship with SEDA eThekwini which expired at the end of March 2017.

A Memorandum of Agreement (MoA) defined this relationship with reviews every three years. As it does with the network of business incubators it provides funding to, each periodic agreement is subject to review. Renewal of agreement should be based on a criteria as determined by conditions outlined by the MoA for the forthgoing period. Currently, a one year agreement is in place that will ensure the sustainability of funding for the 2017/18 financial year and will be guided by the decision on the eThekwini Board on the way forward. In cases where there is no new agreement concluded following a funding cycle that came to term and in line with PFMA requirements, SEDA cannot grant further funding to other organisations.

2. SEDA eThekwini, formally known as eThekwini Business Development Centre, is an entity of eThekwini Municipality. As SEDA needs to account for the allocation it disburses to SEDA eThekwini, the relationship with SEDA eThekwini is performance based and is also guided by other requirements in line with capacity to deliver and corporate governance best practice.

At least three months earlier to the expiry of the funding agreement in March 2017, SEDA National Office initiated a consultation process that entailed a discussion of a combination of key factors that needed actions or decisions by SEDA eThekwini. Conclusions on these were to form a basis that would allow SEDA to continue funding SEDA eThekwini under a new MOU that was going to be signed at the beginning of the new financial year in April 2017. Discussed institutional obligations and options also sought to demystify the use of SEDA’s name by SEDA eThekwini.

It was only in June 2017 that we received a response from the SEDA eThekwini Board, leading to a transitional arrangement by means of a one (1) year funding agreement which was signed by both parties on the 8th of August 2017. The agreement enables the flow of funds contributing towards provisions for continuation of operations particularly delivery of programmes and further outlines commitments between the two parties to support a process that will ensure timeous decisions and compliance arrangements to enable funding beyond the expiry of this new agreement.. Initial payments under this agreement were made on 22 August 2017.

3. The Minister is consulting internally on the matter with the Board of SEDA and has indeed communicated her intention to visit the centre.

24 October 2017 - NW1736

Profile picture: Lorimer, Mr JR

Lorimer, Mr JR to ask the Minister of Small Business Development

Whether any staff of (a) her department and (b) each entity reporting to her were awarded any contracts or agreements to conduct business with any state entity in the (i) 2014-15, (ii) 2015-16 and (iii) 2016-17 financial years; if so, what are the (aa)(aaa) names and (bbb) professional designations of the staff members and (bb)(aaa) details of the contract(s) and/or agreement(s) awarded and (bbb) amounts in each case?”

Reply:

(a) None of the staff from the Department of Small Business Development were awarded any contracts or agreement to conduct business with any state entity in (i) 2014-15 nor in (ii) 2015-16. Below are however the details for 2016 – 17;

(iii) 2016-17

(aa)(aaa) Name

(aa)(bbb) Professional Designations

(bb)(aaa)

Details of the contract/agreements awarded

(bb)(bbb)

Amounts in each case

Michael Malomane

Trade and Industry Advisor: Black Business Service Development Programme (BBSDP)

The staff member is a business partner in the company (Gradobyte).

R 775 000

Theophilus Matsimbi

Transport Officer

The staff member is the spouse to the company owner of Dyambu Rithlavile Trading and PR

R 164 490

(b) The contracts or agreements undertaken by the Small Enterprise Development Agency (SEDA) with state entities are attached in Annexure A.

(c) The Small Enterprise Finance Agency (SEFA) does not have any staff members who was awarded any contracts to conduct any business with any state entity for the financial years 2014-15, 2015-16 nor for 2016-17.

24 October 2017 - NW2649

Profile picture: Chance, Mr R

Chance, Mr R to ask the Minister of Small Business Development

(1)What are the total monthly running costs of the office of the eThekwini’s Small Enterprise Development Agency (SEDA); (2) whether he has found that the allegations of nonpayment of staff salaries are true; if not, what steps are being taken by her department to discipline a certain person (name furnished) for alleged irresponsible public statements claiming that lack of funding of the specified SEDA office led to the specified person taking a personal loan to pay staff; if so, what steps are being taken by her department to regularise payments to the office?”

Reply:

1. The Small Enterprise Development Agency (SEDA) does not readily have the breakdown of actual total monthly costs of the office of the SEDA eThekwini.

As an explanation to the above, SEDA eThekwini is non-profit entity separate from the SEDA network under the Department of Small Business Development (DSBD). SEDA eThekwini is owned by eThekwini Municipality where it possibly submits monthly management accounts. SEDA’s Memorandum of Agreement with SEDA eThekwini is to a maximum of R936 250 per quarter, totalling R3 745 000 per annum and this is primarily a client services performance based with quarterly and annual performance reviews. SEDA’s funding does not make up total funding to Seda EThekwini.

2. As explained above, SEDA’s relationship with SEDA eThekwini is limited to that of a funder, therefore cannot effect disciplinary processes over SEDA eThekwini personnel. Having been informed through media reports on allegations of non-payment of staff and funding of SEDA EThekwini’s office through personal loans, SEDA sought clarity on the matter from eThekwini’s Board of Directors. Following from these engagements, a report is expected from SEDA eThekwini Board. An agreement has already been reached with SEDA eThekwini Board for a due diligence audit to be conducted as part of the current financial year conditional funding agreement.

24 October 2017 - NW1413

Profile picture: Cassim, Mr Y

Cassim, Mr Y to ask the Minister of Small Business Development

What (a) is the total amount spent by her department on legal fees (i) in the (aa) 2014-15, (bb) 2015-16 and (cc) 2016-17 financial years and (ii) since 1 April 2017 and (b) are the (i) details, (ii) outcomes and (iii) costs of each case?”

Reply:

(a) R 141 850.30

(b) Details of the expenditure on legal fees

(a) Period

(b)(i) Details

(b)(ii) Outcomes

(b)(iii) Cost of case

(i) Financial Year

(aa) 2014-15

Legal Opinion on the absorption of contract employees

  • Finalised.
  • Opinion accepted

R 26 500

 

(bb) 2015-16

None

None

None

 

(cc) 2016-17

Black Business Supplier Development Programme (BBSDP)unit

  • Pending.
  • The matters are still with the State Attorneys, other matters is sub judice.

R 115 350.30

(ii)Since April 2017

Arbitration matter at the General Public Service Sector Bargaining Council GPSSBC

Pending

 

06 October 2017 - NW2505

Profile picture: Chance, Mr R

Chance, Mr R to ask the Minister of Small Business Development

Whether, with reference to her reply to question 1966 on 10 August 2017, her department has set targets for the country to achieve using the Global Entrepreneurship Monitor’s index known as the Total Early Stage Entrepreneurial Activity rate, which measures start-up activity in a country’s ecosystem; if not, (a) why not and (b) by when will targets be set; if so, what are the relevant details?

Reply:

No, the Department of Small Business Development (DSBD) has not set targets for the country to achieve a particular rate using the Global Entrepreneurship Monitor’s (GEMS) index known as the Total Entrepreneurial Activity rate, which measures start-up activity in a country’s entrepreneurship ecosystem.

a) The Global Entrepreneurship Monitor is not the only source of data which can be used to determine early stage entrepreneurial activity. The DSBD is therefore, not only limited to this source of data as a tool to measure nor determine the entrepreneurial activity rate. The DSBD will continue to consider other relevant research available to enhance its work.

b) The DSBD is in the process commissioning a “2016 Annual Review on the status of Small Business and Cooperatives in South Africa”. The findings from this research will determine a decision whether there is a need for target setting of early stage entrepreneurial activity.

06 October 2017 - NW2569

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Mulaudzi, Mr TE to ask the Minister of Small Business Development

When are the application dates (a) opening and (b) closing for the board positions of all entities and councils reporting to her?”

Reply:

Small Enterprise Development Agency (SEDA) board positions

The Department issued call for nominations for members to serve on board of SEDA in the various print media from 31st July 2016 and the advert closed on 26 August 2016.

Small Enterprise Finance Agency (SEFA) board positions

Call for nominations for members to serve on board of SEFA was issued in various print media from 12th of July 2015 and the advert closed on 27 July 2015.

All board vacancies are filled, however a need for appointment of additional SEFA board members was recently identified. The Department of Small Business Development (DSBD) initiated the recruitment process of same in accordance with Cabinet approved Handbook for the appointment of persons to boards of state and state controlled institutions, section 31 (f) consulting with the parent department and (h) using departmental databases. The process is underway.

National Small Business Advisory Council

  a) The call for nominations was published on 23 August 2015.

   b) The closing date was 3 September 2015.

06 October 2017 - NW2398

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Kruger, Mr HC to ask the Minister of Small Business Development

What is the status of the appointment of the Board of the National Small Business Advisory Council?”

Reply:

The National Small Business Advisory Body (The Council) is being established in terms of Section 2 of the National Small Business Amendment Act, 2003 (Act No. 26 of 2003) and the members of the Advisory Body are appointed by the Minister of Small Business Development in terms of Section 3(1) of the Act.

The Minister of Small Business Development invited nominations from the general public, small business organisations and interest groups in terms of Section 3(1) of the National Small Business Amendment Act to serve on the Advisory Body. From the nominations received, the Minister of Small Business Development is mandated to select amongst the list of nominees and appoint the members of the Small Business Advisory Body for a period of three years.

To date, the Panel approved by the Minister has finalised the process of shortlisting. All relevant documents and a shortlist of verified names by the DSBD Human Resource Directorate were submitted to the Minister for consideration of the appointment to the Council.

27 September 2017 - NW2396

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Chance, Mr R to ask the Minister of Small Business Development

Whether the research project on capacity-building for township chambers of commerce commissioned by her department and undertaken by a certain company (name furnished) has been completed; if not, by what date will it be completed; if so, what (a) were the recommendations and (b) is the status of the implementation of the recommendations?”

Reply:

The capacity-building initiative, and not the research project, for township Chambers of Commerce done in partnership with the International Labour Organization (ILO) was completed in August 2017.

(a) The recommendation is for the Department of Small Business Development (DSBD) to develop a National Chamber Support Programme focusing on the informal businesses.

(b) It is envisaged that the National Chamber Support Programme will focus on strengthening the governance and operational capacity of informal business organisations, covering amongst others a range of key capacity areas, such as Governance and Leadership, Infrastructure support, Organisational development, formation of linkages and collaboration with other strategic organisations.

The capacity-building initiative, and not the research project, for township Chambers of Commerce done in partnership with the International Labour Organization (ILO) was completed in August 2017.

(c) The recommendation is for the Department of Small Business Development (DSBD) to develop a National Chamber Support Programme focusing on the informal businesses.

(d) It is envisaged that the National Chamber Support Programme will focus on strengthening the governance and operational capacity of informal business organisations, covering amongst others a range of key capacity areas, such as Governance and Leadership, Infrastructure support, Organisational development, formation of linkages and collaboration with other strategic organisations.

27 September 2017 - NW2650

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Chance, Mr R to ask the Minister of Small Business Development

With regard to disputes between Small Enterprise Finance Agency SOC Ltd (SEFA) and its clients over non-payment of loans, (a) what number of loans has SEFA referred to its legal team, (b) what is the total amount in Rands owing to SEFA in these disputes, (c) what is the age analysis of these amounts owed, (d) what percentage of the total amount does SEFA expect to write off as bad debt in the current financial year and (e) how many of (i) these disputes have resulted in SEFA attaching clients' assets to settle the debt owed and (ii) its clients have been liquidated resulting from these legal proceedings?”

Reply:

(a) The number of loans that have been referred to SEFA’s legal team is 284, with 277 from Direct Lending and 7 in Wholesale Lending book.

(b) The total amount in Rands owing to SEFA in these disputes is R534m of which R504 is for direct Lending and R29.5m for wholesale.

(c) The age analysis of the amounts owed is as follows:

Period

 

Direct Lending

Wholesale Lending

Total

 

R

R

R

Current

4 588 941

1 147 431

5 736 372

"1-30

2 322 195

1 203 977

3 526 172

31-60

6 750 033

1 226 358

7 976 391

61-90

2 009 081

624 696

2 633 777

91-120

2 259 501

395 402

2 654 903

121-150

2 149 803

664 410

2 814 213

151-180

3 588 879

388 460

3 977 339

180+

475 126 945

24 966 678

500 093 623

Total Legal Book

504 235 869

29 469 981

533 705 850

 

 

 

 

Number of loans

277

7

284

 

(d) The total amount SEFA expects to write off as bad debt in the current year is not easy to determine because the write-offs depend on the extent of completeness of the legal process, i.e. the Legal process has to be fully exhausted to a reasonable degree that the debt written of is highly unlikely to be recovered.

(e)(i) The table below shows the number of disputes that have resulted in SEFA attaching clients' assets to settle the debt owed. The categories are outlines as follows:

Warrant of Execution

6

R 9 686 424

Attachment of Assets

9

R 12 420 884

Sale in Execution

6

R 17 505 095

(ii) SEFA clients that have been liquidated resulting from these legal proceedings:

There are 5 accounts in liquidation worth R21 million. It has to be noted that SEFA does not initiate liquidation proceedings rather all matters in liquidation are voluntary or ex parte.

19 September 2017 - NW2065

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Mulaudzi, Mr TE to ask the Minister of Small Business Development

Whether (a) her department and/or (b) any entities reporting to her are funding, including by way of discretionary funding, any institution of research and development (i) domestically and/or (ii) internationally; if so, (aa)(aaa) what are the names of the specified institutions and (bbb) what are their functions, (bb) from what date has her department or any entity reporting to her been funding them and (cc) what amount has her department contributed towards such funding?”

Reply:

(a) The Department of Small Business Development (DSBD)

The DSBD has not funded any institution of Research and Development (i) domestically nor (ii) internationally and does not have a discretionary fund in place.

(aa)(aaa) Not applicable.

(aa)(bbb) Not applicable.

(aa)(bb) Not applicable.

(aa)(cc) Not applicable.

(b) The Small Enterprise Finance Agency (SEFA)

SEFA does not fund any institution of research and development (i) domestically nor (ii) internationally.

(aa)(aaa) SEFA, however, acknowledges the importance of research and has established research collaborations with some of the South African Universities. SEFA has established research collaboration with the University of South Africa (Unisa), North West University (NWU), University of Free State (UFS) and University of Stellenbosch.

(aa)(bbb) The scope of the research collaboration with the universities focuses on cooperative research between SEFA and the institutions on issues relating to access to finance for SMMEs and Co-operative Enterprises.

(aa)(bb) Not applicable.

(aa)(cc) Not applicable.

(b) Small Enterprise Development Agency (SEDA)

SEDA has not funded any Research and Development institutions.

(aa)(aaa) Nonetheless, SEDA has Service Agreements with Global Entrepreneurship Monitor (GEM) and Bureau Economic Research (BER).

(aa)(bbb)(i) SEDA partnered with GEM South Africa through University of Cape Town to participate in the research study that support SMMEs products and policy developments); and

(aa)(bbb)(ii) BER is the research partner housed at the University of Stellenbosch – assist with compiling Economy Sector update to tract the development in the SMME Sector).

(aa)(bb) Not applicable.

(aa)(cc) Not applicable.

14 September 2017 - NW2397

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Chance, Mr R to ask the Minister of Small Business Development

Whether her department has (a) conducted any investigations into the (i) business model of and (ii) impact of and/or (b) considered the extent to which the operations of the Small Enterprise Foundation based in Tzaneen provide a model for large-scale financial support for women-owned small-, medium- and micro-sized enterprises; if not, in each case, why not; if so, what are the relevant details in each case?”

Reply:

(a)(i) SEFA has been supporting SEF’s activities since the days of Khula Enterprise Finance. The basis of the support was a thoroughly conducted due diligence (investigation) to determine the appropriateness of their model to discharge the Government mandate to expand and strengthen microenterprises in South Africa. SEF has raised facilities with SEFA since 2005 when it borrowed R9,6 million until recently when it borrowed R30 million. Each time SEF has gone to SEFA for loans, a new due diligence that interrogates SEF’s business model has been conducted, with the findings contained in the submission to SEFA’s Executive Committee for consideration.

(ii) SEFA has a balanced scorecard that it strives to achieve through its activities and partnerships. The scorecard includes the following:

• Facilities disbursed in priority Provinces (Numbers and Rand Values)

• Facilities disbursed to Youth (18 – 35 years of age) (Numbers and Rand Values)

• Facilities disbursed to Women (Numbers and Rand Values)

• Facilities disbursed to Blacks (Numbers and Rand Values)

• Facilities disbursed to entrepreneurs with disability (Numbers and Rand Values)

• Number of jobs facilitated (created and maintained)

Whenever a funding proposal is submitted to SEFA, the subsequent due diligence interrogates the performance of the applicant against this scorecard. SEF has continually been assessed against these parameters and confirmed to have a huge impact on almost all of them except the facilities to people with disabilities. In addition, as part of the monthly reporting protocol for all approved funding applicants, monthly performance data is submitted to SEFA and is strictly monitored by SEFA’s Post Investment and Monitoring (PIM) Division.

SEF’s development statistics are also collected according to this process. Furthermore, SEFA conducts random monitoring visits that include interviewing SEF’s clients to determine the impact of the loans extended to them. The feedback obtained has further highlighted the impact of the government funding to women channelled through SEF. Currently, SEF operates in five (5) priority Provinces of Limpopo, North West, Northern Cape, Mpumalanga and the Eastern Cape. Over 99% of their portfolio is to women. More than 60% of all development statistics reported by SEFA on an annual basis are achieved through partnership with SEF.

(b) The SEF business model derives from the iconic Grameen Bank lending model. It utilizes solidarity groups made of up to five (5) women each. Seven of these groups get together to form a “centre”. The “centre” becomes the administrative machinery for not only assessing and recommending loans to members, but also the authority to ensure that all loans are collected. Other benefits that come from the “centres” include peer support for both business and social purposes. In many countries, the “centres” become the mechanism to empower women on a number of other social matters including HIV/AIDS education, nutrition and sanitation. SEF interacts with its clients through the group and “centre” meetings and provides the essential business education for strengthening the microenterprises.

Given the success of SEF and similarly structured programmes here in South Africa and elsewhere, it has been established that SEF’s business model is absolutely appropriate for providing large scale financial support for women-owned small-medium- and micro-sized businesses.

12 September 2017 - NW1787

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Mulaudzi, Mr TE to ask the Minister of Small Business Development

(1)Which entities reporting to her (a) have a board in place and (b) do not have a board in place, (i) of those that have a board, (aa) when was each individual board member appointed and (bb) when is the term for each board lapsing and (ii) how many (aa) board members are there in each board and (bb) of those board members of each entity are female; (2) with reference to entities that do not have boards in place, (a) who is responsible for appointing the board and (b) when will a board be appointed?

Reply:

1. All the entities under direct reporting of Minister of Small Business Development have boards in place and the Minister is responsible for appointment these boards.

SMALL ENTERPRISE FINANCE AGENCY (SEFA)

BOARD MEMBERS

GENDER

RACE

APPOINTMENT DATE

EXPIRY DATE

Ms Hlonela Lupuwana-Pemba,

(Chairperson)

Female

Black

01 October 2016

30 September 2019

Ms Happy Ralinala

Female

Black

01 October 2016

30 September 2019

Ms Kate Moloto

Female

Black

01 October 2016

30 September 2019

Ms Charmaine Groves

Female

Coloured

01 October 2016

30 September 2019

Ms Nomcebo Dlamini

Female

Black

01 October 2016

30 September 2019

Mr Kholofelo Molewa

Male

Black

01 October 2016

30 September 2019

Mr Phakamile Mark Mainganya

Male

Black

01 October 2016

30 September 2019

Mr Nazir Ahmed Osman

Male

Indian

01 October 2016

30 September 2019

Mr Lawrence Mabundla

Male

Black

01 October 2016

30 September 2019

SMALL ENTERPRISE DEVELOPMENT AGENCY (SEDA)

BOARD MEMBERS

GENDER

RACE

APPOINTMENT DATE

EXPIRY DATE

Dr Ivor Zwane

(Chairperson)

Male

Black

01 September 2010 - 31 August 2013

01 November 2013 -31 October 2016

31 August 2017

(Extension)

Dr Marius Venter

Male

White

13 December 2010 -01 September 2013

01 September 2013 - 31 August 2016

31 August 2017

(Extension)

Mr Mojalefa Mohoto

Male

Black

01 September 2010 to 31 August 2016

01 September 2013- 31 August 2016

31 August 2017

(Extension)

Mr Dennis Thabaneng

Male

Black

01 September 2008- 31 September 2011

01 November 2011- 31 October 2014

31 August 2017

(Extension)

Ms Precious Lugayeni

Female

Black

01 September 2008- 31 September 2011

01 November 2011- 31 October 2014

31 August 2017

( Extension)

Ms Anjue Hirachund

Female

Indian

01 September 2015

31 August 2018

Ms Zanele Monnakgotla

Female

Black

01 September 2015

31 August 2018

Mr Thakhani Makhuvha

Male

Black

01 November 2013

Linked to the term of Office as the CEO of sefa

2. Not applicable.

05 September 2017 - NW1421

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Steenkamp, Ms J to ask the Minister of Small Business Development

(a) What number of cases of (i) fruitless, (ii) wasteful and (iii) irregular expenditure in her department were identified by the Auditor-General in the (aa) 2014-15, (bb) 2015-16 and (cc) 2016-17 financial years, (b) what was the amount in each case and (c) how much of the specified amount has been recovered in each case?

Reply:

Description

aa. 2014/2015

bb. 2015/2016

cc. 2016/2017

a. What number of cases of

     

(i) Fruitless

-

-

 

(ii) Wasteful

-

-

 

(iii) Irregular

-

1

 

b. What was the amount of each case?

     

(i) Fruitless

-

None

-

(ii) Wasteful

-

None

-

(iii) Irregular

-

R1 834 000*

-

c. How much of the specified amount has been recovered in each case?

     

(i) Fruitless

-

None

-

(ii) Wasteful

-

None

-

(iii) Irregular

-

None

*Related to the B'avumile training. The department did not comply with paragraph 3.4 of PN 8 of 2007/2008 which requires that for transactions with a value of and above R500 000.00 a competitive bidding process should be followed. An investigation into the matter was conducted and no official was found to have personally benefited and it was confirmed that the department derived value in the form of training provided to beneficiaries.

05 September 2017 - NW511

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Kruger, Mr HC to ask the Minister of Small Business Development

(1) Whether there are any vacancies in her department; if so, (a) which vacancies are key positions and (b) what effect do the vacancies in the specified key positions have on the execution of her department’s mandate; (2) whether there are any small business industrial parks and/or small business incubators in the (a) Dr J S Moroka Local Municipality and (b) Thembisile Hani Local Municipality; if so, what is the (a) status, (b) location and (c) number of small businesses that are assisted by her department in the specified municipalities; (3) (a) what is the total number of regulatory measures (Red Tape) that were removed or adjusted to ease the environment for small businesses in municipalities because of her department’s roll out of the red tape strategy for municipalities and (b) what are the further relevant details in this regard?

Reply:

(1) The structure of the Department of Small Business Development (DSBD) currently shows 20 vacancies. Following the review of the first draft of the Strategic Plan and Annual Performance Plan submitted on 30 August 2016, the DSBD received feedback on 22 November 2016 from the Department of Planning, Monitoring and Evaluation (DPME) and the National Treasury which required a fundamental review of the DSBD Strategy. The DSBD could not fill the Line Function posts due toj the methodology of “structure follows strategy”. The proposed structure (prepared for consultation with the DPSA) developed during 2016 had to be discarded. A business case for the new structure (in alignment with the revised strategy) will be prepared during the 2017/2018 financial year.

(a) The current structure shows the following funded vacant key positions:

(i) Deputy Director General (DDG): Enterprise Development & Entrepreneurship.

(ii) Deputy Director General: Co-operatives Development and Enterprise Competitiveness Support.

Kindly note that the designation of the two (2) funded DDG’s is likely to change.

(b) The Minister has appointed two Senior Managers to act in the above mentioned vacant DDG posts. The vacancies have, therefore, not severely impacted the functioning of the Department in terms of the execution of its mandate.

(2)(a)&(b) The pilot phase of the Enterprise Incubation Programme (EIP) ending 31 March 2017 has not received submissions from small business incubators in Dr J S Moroka Local Municipality and the Thembisile Hani Local Municipality. The has been no incubation from the Small Enterprise Development Agency (SEDA) nor any industrial park through the Department of Trade and Industry (thedti) in Dr J S Moroka Local Municipality and the Thembisile Hani Local Municipality

(c) The Informal and Micro Enterprise Development Proramme (IMEDP) has supported 43 businesses in Dr JS Moroka and 30 in the Thembisile Hani, to a total of 73 informal businesses in these two municipalities combined.

(3) (a) The DSBD is currently conducting the Red Tape Reduction programme in partnership with the Department of Cooperative Governance and Traditional Affairs (CoGTA), the South African Local Government Association (SALGA) as well as the International Labour Organisation (ILO) focusing on red tape reduction as experienced by small, micro and medium enterprises (SMMEs) and Co-operatives within the different municipalities. The regulatory and administrative burdens which are being addressed and removed are linked to the following seven indicators and associated legislation and regulations:

(i) Effectiveness of the complaints notification system as governed by the Municipal Systems Act;

(ii) Communication of relevant business information by municipalities to SMMEs and Co-operatives as governed by the Promotion of Access to Information Act;

(iii) Municipal building plan approval processes as governed by the National Building Standards Act, Spatial Planning and Land Use Management Act as well as Municipal Services Charter;

(iv) Lengthy and inefficient supply chain management processes (which ultimately affects the 30-day payment system) relevant legislation would be the Preferential Procurement Policy Framework Act (PPPFA), Municipal Finance Management Act (MFMA) and Preferential Procurement Regulations;

(v) Municipal business registration and permits relevant legislation includes: Business Act, National Health Act, National Building Regulations and Building Standards Act including various by-laws that are relevant to the business licensing process, e.g. municipal by-law on food or tourism regulations;

(vi) Development and enforcement of municipal by-laws that promote business development, some of the relevant legislation include the Municipal Systems Act and Local Government Transition Act; and

(vii) Assessment of percentage spent in procurement from SMMEs and Co-operatives aligned to the PPPFA and MFMA and preferential procurement regulations.

Each of the above mentioned indicators has a specific number of legislation and regulations of which each municipality is responsible for assessing and ultimately removing as per specific municipal context and action plan.

(b) The DSBD is also conducting a national study on legislative and regulatory protocols impeding on SMMEs and Co-operatives, and the key focus areas of the study are: (i) registration and reporting under tax, company registration and labour laws; (ii) state procurement; (iii) construction; and (iv) broad-based black economic empowerment. The draft report will be finalised by the end March 2017.

17 August 2017 - NW1417

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Dreyer, Ms AM to ask the Minister of Small Business Development

What amount has her department spent on (a) travel, (b) accommodation and (c) subsistence costs for (i) her, (ii) her deputy and (iii) the respective spokespersons and media liaison officer(s) in the (aa) 2014-15, (bb) 2015-16 and (cc) 2016-17 financial years?”

Reply:

2014/15

The Department of Small Business Development (DSBD) spent R0.00 for (a) travel, (b) accommodation and (c) subsistence costs for the (i) Minister, (ii) Deputy Minister and (iii) the spokesperson in the (bb) 2014-15 financial year.

For the 2014-15 financial year, DSBD did not have a vote and all expenditure relating to the 2014-15 period was incurred under the Department of Trade and Industry (the dti) vote.

2015/16

The Department spent R2 427 204.75 for (a) travel, (b) accommodation and (c) subsistence costs for the (i) Minister, (ii) Deputy Minister and (iii) the spokesperson in the (bb) 2015-16 financial year.

No

Name

  1. Travel

(R)

  1. Accommodation

(R)

  1. Subsistence costs (R)

Total

(R)

(i)

Minister

1 007 264,93

204 850,46

45 314.30

1 257 429,69

(ii)

Deputy Minister

724 333,73

177 966,07

119 231.23

1 021 531,03

(iii)

Cornelius Monama

92 590,82

21 421,47

34 231.74

148 244,03

2016/17

The Department spent R1 439 399.73 for (a) travel, (b) accommodation and (c) subsistence costs for the (i) Minister, (ii) Deputy Minister and (iii) the spokesperson in the (cc) 2016-17 financial year.

No

Name

  1. Travel

(R)

  1. Accommodation

(R)

  1. Subsistence costs (R)

Total

(R)

(i)

Minister

553 220,06

114 732,96

44 074.64

712 027,67

(ii)

Deputy Minister

436 963,22

166 090,93

46 479.53

649 533,68

(iii)

Cornelius Monama

45 227,57

4 582,40

28 028.41

77 838,38